Nvidia (NVDA, news, chart) is seeing an uptick in volume in recent trading. Options premiums were crushed early in the day after the company reported quarterly earnings of 13 cents, one cent ahead of analyst estimates, and the company also announced a $1 billion increase to its share buyback. Shares rallied early and vols came crashing down. The September 12.5 calls, for example, were offered for 55 cents a contract late yesterday and hit a low of 50 cents today despite the rally in the share price. However, those calls are now trading for 80 cents a contract, as a wave of buying seems to be lifting implied vols off the lows of the day. Total volume is running six times the usual. The September 15 calls are the most actives, with 35,000 contracts traded, roughly double the existing open interest. While only 27 percent of that volume traded offerside today, there has been an obvious increase in buying interest in NVDA calls since about 14:15 Eastern time.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.