NVIDIA Sees Surge in Options Activity Amid Market Confidence

NVIDIA Corp. (NVDA) is experiencing a significant increase in options activity, reflecting investors’ strong belief in the company’s leading market position and ongoing product innovation. Approximately $17 million in sweep orders have been directed toward deep-in-the-money $100 calls that are set to expire at the end of May. This volume represents a large portion of today’s open interest in that contract, suggesting a bullish outlook.

Unprecedented Volume and Open Interest Trends

The trading activity for the 100-strike May options shifted from minimal levels to a dramatic increase. On May 14, only 342 contracts were traded, and 268 on May 16. However, today saw a surge to 41,054 contracts, constituting 94% of the existing open interest in a single day.

With open interest slightly increasing post-surge, it indicates that many of today’s transactions were new positions rather than closures. The contract price declined slightly from $35.70 on May 14 to $35.50 today, while implied volatility ticked up to 87.3%. Overall, traders demonstrated a fresh wave of bullish sentiment on May 19, with new volume closely aligning with open interest.

Trade Side Analysis

The breakdown for NVDA’s $100 calls demonstrates that nearly half of the premium—around $48 million, or 44%—changed hands below the quoted bid. This suggests substantial negotiated transactions or liquidity-seeking sellers pricing beneath market levels. Demand remains robust; approximately $29.6 million (27%) executed at the ask, highlighting buyers eagerly lifting offers, while another $5.9 million (5%) was completed near mid-market prices. Conversely, bid-side executions amounted to $24.6 million (23%), with virtually no trades occurring above the ask.

Overall, the flow indicates a slight bullish tilt, with ask-side trades at $29.6 million compared to bid-side at $24.6 million. However, the prevalence of trades below bids hints at significant activity from a large liquidity provider or hedger, creating a mixed, yet active market for these deep-in-the-money calls.

Additional Noteworthy Options Activity

New interest also appeared in NVDA’s $115 calls expiring June 20, with buyers spending about $5.5 million at the ask. This activity supports the overall bullish sentiment surrounding NVIDIA in the near to medium term.

Current Landscape for NVIDIA

NVIDIA’s strong performance over the past five trading days stems from a combination of fading headwinds and new growth opportunities. The U.S. government’s removal of the “AI diffusion rule” on May 13 alleviates previous limits on exporting advanced AI chips, thus broadening NVIDIA’s market landscape.

Furthermore, checks reveal that Blackwell-generation GPUs are already sold out for the year, suggesting another strong quarter when NVIDIA reports earnings on May 28. The anticipation of these results, combined with Wall Street’s rising consensus target and “Strong Buy” ratings, has resulted in increased buying momentum.

Understanding NVIDIA’s Profile

NVIDIA Corporation (NVDA), headquartered in Santa Clara, California, is a leading technology firm recognized for its high-performance graphics processing units (GPUs). Founded in 1993, NVIDIA initially focused on GPUs for gaming and computer graphics and has since expanded into various sectors including AI, autonomous vehicles, and high-performance computing.

Today, its technology plays a crucial role in applications requiring intensive computing power, serving diverse industries from healthcare to finance. NVIDIA holds a significant share of the global GPU market, positioning itself as a pioneer in accelerated computing and AI hardware solutions.

Analyst Recommendations Overview

NVIDIA (NVDA) enjoys strong analyst sentiment, as shown by recent ratings. CFRA rates it four stars, suggesting high confidence. Market Edge’s outlook has improved to “Long,” indicating bullishness, while Argus recommends a “Buy.”

Morningstar assigns a three-star rating, suggesting fair valuation, while LSEG (formerly Refinitiv) rates it as “Outperform.” Schwab Equity Ratings gives NVDA a “B,” indicating above-average performance. Overall, analysts express favorable views, with most recommending buying or holding NVDA shares.