Major Bullish Call Trades on NVIDIA Signal Strong Investor Sentiment

Recent activity reveals two significant bullish sweep call trades for NVIDIA (NVDA), targeting $120 strike options that expire on May 30, 2025. These trades totaled 10,783 contracts with a combined premium of $15.5 million. Executed at the ask price, this suggests a strong buying interest. The trades were notably in-the-money, as the spot price was around $135. While the volume/open interest (V/OI) ratio of 0.31 implies these trades are not entirely new, the urgency in sweep orders indicates institutional players are eager for long-term gains.

It appears traders built positions in this contract ahead of NVDA’s earnings call, likely contributing to increased open interest. The structure and size of these orders reflect bullish confidence in NVDA’s continued price growth leading into 2025.

Increased Trading Volume and Open Interest

Trading volume for the NVDA $120 call options surged on May 22 and May 27, exceeding 22,000 contracts daily. Open interest saw a notable increase of 13,373 contracts on May 23, indicating many of these trades were newly established rather than short-term transactions. Concurrently, the contract price rose from $12.60 to $15.65, while implied volatility jumped from 70.81% to 101.64%, pointing to heightened market interest and bullish sentiment.

Additional Notable Option Trades

Investor confidence surrounding NVDA reaches beyond near-term expectations. A significant options trade was noted for the March 20, 2026 expiration at the $110 strike price, executed as a sweep order totaling approximately $4.2 million. This involved 1,100 contracts purchased at a premium of $38.60, reflecting an elevated implied volatility of 48.57%. The volume from this trade constituted about one-third of the total open interest for this contract, indicating substantial market impact and confidence.

NVIDIA’s Upcoming Earnings Forecast

NVIDIA (NASDAQ: NVDA) is set to announce its first-quarter fiscal 2026 earnings after the market closes on May 28, 2025. Analysts project revenue of around $43.28 billion, signifying a year-over-year increase of 66%. Expected earnings per share (EPS) stand at $0.85, a 39% rise from the previous year.

Despite challenges due to U.S. export restrictions on AI chip sales to China—which could cost up to $5.5 billion per quarter—NVIDIA reports strong demand in other markets. In response, the company is developing a more affordable AI GPU variant for the Chinese market to maintain its competitive edge.

Investor sentiment remains positive, with traders placing bullish bets on NVIDIA ahead of the earnings report. Options activity indicates expectations for potential stock price movements of up to 7% following the earnings announcement.

About NVIDIA

NVIDIA Corporation (NVDA) is a leading technology firm known for its high-performance graphics processing units (GPUs). Established in 1993, NVIDIA transformed computer graphics with its invention of the GPU and has become a key player in the artificial intelligence (AI) landscape. Its GPU architectures, including GeForce and Quadro, are utilized across diverse fields, from advanced gaming to deep learning and autonomous vehicle technologies.

Analyst Ratings Overview

As of late May 2025, analyst sentiment for NVIDIA (NVDA) remains largely positive. CFRA rates it a strong 4-star (Buy), while Market Edge shifts its rating to Long. Argus maintains its Buy rating, reinforcing confidence in the stock. Morningstar assigns a 3-star rating, indicating fair valuation. LSEG upgrades NVDA to Outperform, and Schwab Equity Ratings gives it a B grade, signifying moderate bullish sentiment. Overall, this consensus reflects optimism in NVDA’s growth potential ahead of its earnings and AI advancements.

Cheddar Flow is an options order flow and dark pool data platform designed for individual investors and traders, offering real-time data on unusual options activity in the U.S. stock market.