Option Focus | NVIDIA's $32.57 Million Put Buy at 240 Strike Dominates Bearish Flow, Overshadowing $8.97 Million Synthetic Call and Signaling Institutional Caution

Option Witch
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NVIDIA closed at 239.24 USD with a 0.14 % gain.

Large options trades leaned bearish as a $32.57 million put purchase at the 240.0 strike dominated displayed flow, overshadowing an $8.97 million synthetic call. The put was slightly in the money at execution, suggesting high-conviction downside positioning rather than a cheap tail hedge. A long-dated synthetic long added bullish nuance, but the bulk-order profile pointed to cautious institutional sentiment and heavier downside demand.

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Options Indicators

NVIDIA’s implied volatility is 36.44%, and with an IV percentile of just 4.78%, current option volatility is sitting near the low end of its historical range, indicating that options are cheaply priced rather than expensive. At the same time, the IV/HV ratio of 1.50 shows implied volatility is still running above realized volatility, suggesting the market is assigning a modest premium to forward uncertainty even though overall volatility pricing remains subdued in historical terms. The Call/Put volume ratio is 1.45.

Large Trades

A put buy worth $32.57 million was the largest displayed trade, with 13,000 contracts purchased at the 240.0 strike expiring on 2027-06-17. With NVDA referenced at $239.24, this put was slightly in the money at execution, making it a high-conviction bearish position rather than a cheap tail hedge. The long-dated tenor suggests the buyer was positioning for a meaningful downside scenario or seeking extended portfolio protection against a larger pullback in NVDA over time.

A synthetic call worth $8.97 million was also prominently displayed, created through buying the 310.0 call and selling the 140.0 put, both expiring on 2028-01-21. Using the preprocessed figures, this synthetic long carried a net debit of $6.16 million, reflecting a clearly bullish stance with substantial forward exposure. Both legs were out of the money when initiated, indicating the trader was expressing long-horizon upside conviction while accepting downside assignment risk via the short put, effectively replicating long stock behavior with options structure efficiency. Overall, the large-trade flow leans bearish. Although there were notable bullish structures, including a sizable long-dated synthetic long and several call-buying or put-selling positions in the broader tape, the dominant feature was heavier downside demand and call overwriting activity, led by the very large in-the-money put purchase and reinforced by multiple bearish or neutral-to-bearish premium-selling trades. The bulk-order profile therefore points to cautious to negative institutional sentiment on NVDA, with market participants either hedging against weakness or expressing the view that upside may be capped relative to downside risk.

Strategy Reference

For a low assignment probability on the short put side, a seller could consider the 140.0 strike in the same 2028-01-21 expiration, which is far out of the money and aligns with the synthetic call’s short put leg, or use a put credit spread such as selling the 200.0 put and buying the 160.0 put to cap margin and downside exposure.

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