Nvidia Gets Dumped Before Valentine's Day Earnings

NVDA puts have been active since the company lowered guidance

Digital Content Manager
Feb 11, 2019 at 3:27 PM
facebook X logo linkedin


The shares of Nvidia Corporation (NASDAQ:NVDA) are sliding in afternoon trading -- down 1.4% at $146.14, at last check -- after Bernstein cut the semiconductor name to "market perform" from "outperform," and trimmed its price target to $175. The downgrade follows Nvidia's recently slashed fourth-quarter guidance, based partly on lessening demand in China. The company is set to report its fourth-quarter earnings on Valentine's Day -- Thursday, Feb. 14. 

While NVDA calls are outnumbering puts in today's trading, it looks like options traders have tended toward bearish bets of late. Nvidia is on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest options volume during the past 10 days, with names highlighted in yellow new to the list. As you can see, roughly 1.1 million NVDA puts changed hands, compared to just 770,843 calls. 

 Most Active Options Feb 11

In fact, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows that Nvidia stock's 10-day put/call volume ratio of 0.76 ranks in the 83rd percentile of its annual range. This indicates that while bought calls have exceeded puts on an absolute basis in the past two weeks, options traders have been ramping up their bearish bets of late. 

Drilling down, it looks like the February 135 strike is the most popular among both put and call traders, with about 16,400 puts and 17,000 calls in open interest. Over the past 10 sessions, though, the March 140 put has seen the biggest increase in open interest, with more than 10,300 contracts added.

The equity has suffered a number of bear gaps in the last several months -- the most recent coming on Jan. 28, after the aforementioned guidance cut -- and dropped more than 50% in the fourth quarter alone. While Nvidia shares are still up more than 9% year-to-date, recent rebound attempts have stalled around its 60-day moving average. 

NVDA stock chart feb 11

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI