NVIDIA closed at 225.51 USD, a −1.47 % change.

In recent large options activity, the most prominent trade was a $5.08 million short strangle that sold volatility, while the broader block flow leaned bearish through heavy call selling and put buying. Notably, a $1.04 million bullish call spread still expressed defined-risk upside, but institutional positioning suggested hedging and premium collection were the dominant priorities.

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Options Indicators

NVIDIA’s implied volatility stands at 36.54%, and with an IV percentile of just 4.38%, current option volatility is sitting on the low side relative to its own recent history, indicating that options are cheaply priced rather than expensive. At the same time, the IV/HV ratio of 0.83 shows implied volatility is running below historical volatility, which further supports the view that current premium levels are relatively modest. The Call/Put volume ratio is 1.60.

Large Trades

A premium-selling combination worth $5.08 million was the largest displayed trade, consisting of a short 240.0 call and a short 190.0 put, both expiring on 2026-11-20. With NVDA at $225.51, both legs were out of the money, making this a short strangle rather than a synthetic structure. The trade was opened for a net credit of $5.08 million, indicating a volatility-selling and income-generation strategy that benefits if shares remain between the two strikes over time. Strategically, this reflects a neutral-to-moderately bullish stance, as the trader is willing to cap upside above $240.0 while also accepting downside exposure below $190.0 in exchange for substantial premium collection.

A bullish call spread opened for a net debit of $1.04 million was the second highlighted trade, built by buying the 230.0 call and selling the 250.0 call, both expiring on 2026-10-16. With the stock at $225.51, both calls were out of the money, and the structure expresses a defined-risk upside view. Because it was entered for a net debit, the trade represents a directional bullish bet rather than premium harvesting, with the trader targeting a move above $230.0 while capping maximum upside at $250.0. Overall, the large-trade flow leans bearish: although there was notable interest in upside through the bull call spread and some call buying elsewhere, the dominant pattern across the broader block activity was heavy call selling, put buying, and bearish synthetic positioning, suggesting institutions were more focused on hedging risk, fading upside, and collecting premium than on chasing a sustained rally.

Strategy Reference

For traders seeking a low assignment probability while selling premium, an out-of-the-money put around the 190.0 strike could serve as a similar volatility-selling reference, given the muted IV environment and bearish block backdrop; alternatively, a defined-risk put credit spread may offer lower margin exposure than a naked short strangle.