Options market bets: NVIDIA continues to fall!
Yesterday, a trader purchased over 300,000 contracts, betting that NVIDIA's stock price will fall to $115 before March 7, which means that from Wednesday's closing price, NVIDIA's stock price would still drop by 12%—the last time it was at this level was in mid-September
According to Bloomberg, on February 27th from 2:00 PM to 2:40 PM, a trader purchased over 300,000 contracts, betting that NVIDIA's stock price would fall to $115 before March 7, which implies a further 12% drop from Wednesday's closing price—the last time it was at this level was in mid-September.
Recently, NVIDIA's stock price has continued to decline due to market concerns about its growth prospects. Yesterday, NVIDIA closed down 8.48% at $120.15 per share.
Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, believes that this bearish trade likely exacerbated NVIDIA's stock price decline on Thursday, making it the worst trading day in a month.
After the investor purchased 300,000 options, NVIDIA's stock price fell by about 3%, and the implied volatility of the options rose by 8 points.
Additionally, the trading volume of NVIDIA's put options surged yesterday, with Bloomberg data showing that this bearish trade pushed NVIDIA's put options trading volume to more than double the average level of the past 20 days.
In the last 30 minutes of trading, the volume increased significantly again, adding 100,000 contracts. Murphy believes this may indicate that the investor who purchased 300,000 put options earlier that day is taking profits