Option Focus | NVIDIA's $1.73 Million Bull Put Spread Signals Long-Term Confidence as $4.17 Million Straddle Bets on Explosive Move

Option Witch
2 hours ago

NVIDIA ended the latest session at USD 228.45, up 1.80%.

Large options flow painted a nuanced but broadly constructive picture for NVDA. The most prominent display was a bullish put spread collecting $1.73 million in net credit, signaling confidence in a long-term floor for the stock. Meanwhile, a $4.17 million net debit straddle-style position, buying both a call and a put, revealed expectations for an explosive move through September 2026. Together, the activity suggests traders remain optimistic on NVIDIA’s medium-term outlook while actively paying for protection and volatility rather than embracing one-sided euphoria.

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Options Indicators

NVDA’s implied volatility stands at 37.83%, while its IV percentile is just 11.11%, which indicates volatility is sitting on the lower end of its historical range and options are relatively cheaply priced. With the IV/HV ratio at 0.84, implied volatility is also running below realized volatility, suggesting the options market is not demanding a premium over recent actual movement. Overall, current option pricing looks comparatively inexpensive rather than stretched. The Call/Put volume ratio is 1.79.

Large Trades

A bullish put spread collecting $1.73 million in net credit was the most prominent displayed large trade, using the January 15, 2027 expiration to express a constructive long-term view on NVDA. The structure involved selling the 200.0 put and buying the 160.0 put, with both strikes out of the money versus the $228.45 reference stock price, making this a classic bull put spread rather than a naked downside sale. Because the trade was executed for a net credit, the intent appears to be premium collection combined with a directional bullish stance, effectively betting that NVDA stays comfortably above 200.0 through expiration while limiting tail-risk below 160.0. The use of distant-dated, out-of-the-money puts suggests confidence in the stock’s longer-term floor rather than an aggressive near-term upside chase.

A $4.17 million net debit two-leg call-and-put purchase was the other standout trade, pairing a long 230.0 put with a long 240.0 call for the September 18, 2026 expiration. With NVDA at $228.45, the 230.0 put was in the money while the 240.0 call was out of the money, creating a long-volatility, directionally opportunistic position that can benefit from a large move in either direction, though the slightly in-the-money put adds a mild defensive or bearish tilt at entry. Because both legs were purchased, this was not a synthetic call or synthetic put, but rather a premium-paid directional volatility bet with substantial size, signaling expectations for a meaningful future price swing rather than a simple income strategy. Overall, the bulk-order flow still leans modestly bullish: the largest income-style position was a clearly bullish put spread, and the broader large-trade mix shows buyers willing to express upside views while also layering in selective hedges and volatility plays. That combination points to a market tone that remains constructive on NVDA’s medium-term outlook, but not complacent, with traders still paying for protection and movement rather than embracing one-sided euphoria.

Strategy Reference

For traders seeking a low-assignment-probability income approach, selling the January 2027 160.0 put or using a narrower 180.0/160.0 bull put spread may offer a premium-collection strategy with defined risk and reduced margin compared to a naked put sale.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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