$NVDA option bears double money

Bearish option traders are seeing fast profits today in NVIDIA Corporation (NVDA).

On Sep. 12Market Rebellion’s Unusual Option Activity Service found that 5,700 Weekly $170 puts, expiring next Friday, were bought for $2.10 to $2.69 with shares at $137.34. This was clearly fresh buying, as open interest in the contract was just 1,800 before the activity appeared.

Those puts have traded for as much as $5.80 so far this session, more than 2 times their purchase price. The stock fell 6.86% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

NVDA was last at $129.86 this afternoon, down 1.08% on the day.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!


Score 10% off annual services