NVDA Calls Red-Hot With Surging Semiconductor Sector in Focus

Thanks to data courtesy of Schaeffer's Senior Quantitative Analyst Rocky White, we have a list below comprised of 20 stocks that have attracted the highest weekly options volume over the last 10 trading days, with new additions highlighted in yellow. With Big Tech in focus, and most semiconductor stocks on a seemingly unstoppable rally, it's no surprise Nvidia Corporation (NASDAQ:NVDA) made the list. The stock notched yet another high of $436.82 this morning -- trouncing its former July 13 peak at $431.68. At last check, NVDA is up 2.2% at $434.07. 

Today's push higher puts the security at an 85.5% year-to-date lead. And while NVDA briefly succumbed to pressure at the $420 level, prior to its mid-June highs, support at its 20-day moving average, and further down at its 30-day moving average, kept these losses in check. 

This impressive price action has brought plenty of options bulls to the table. A look at White's chart  shows 377,509 calls exchange during the past 10 days, and 202,060 puts. Most popular during this time period was the weekly 7/24 430-strike call, which expired on Friday, July 24, with 19,177 contracts traded. 

Today's trading also leans bullish. So far, 41,000 calls and 16,000 puts have crossed the tape, with volume running at 1.2 times the intraday average. The weekly 8/7 450-strike call is by far the most popular, followed by the 440-strike and 435-strike calls in the same weekly series, with positions being opened at all three. This suggests options players are betting on even more upside for NVDA in the coming week. 

Analysts are quite optimistic on the chip stock, too. Of the 29 in coverage, just five call it a "hold," compared to 24 "buy" or better ratings, and not a sell to be seen. Should NVDA keep climbing, it could spark a round of price-target hikes. The current consensus 12-month price target of $406.18 sits at a 7% discount to current levels. 

It's worth noting NVDA has an earnings event slated for later this month, on August 19, after the close. A look at the firm's last eight earnings reports shows mixed next-day returns, including a 7.3% pop after its August 2019 report, and an 18.8% dip following its November 2018 earnings event.