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Big Money Trader Takes Bearish Stance on NVIDIA: What It Means for Retail Traders

A large position indicating a bearish outlook on NVIDIA has caught the attention of retail traders. This significant move was detected through publicly available options history tracked by Benzinga. While it is uncertain whether this position belongs to an institution or a wealthy individual, such actions often indicate insider knowledge.

Benzinga's options scanner identified 14 uncommon options trades for NVIDIA, which is unusual. Analysing the sentiment of these big-money traders, it is split between 28% bullish and 71% bearish. Among the options trades, there are 10 puts valued at $550,123 and 4 calls valued at $317,615.

Considering the volume and open interest on these contracts, it appears that the whales have been targeting a price range of $400.0 to $455.0 for NVIDIA over the past three months. By monitoring the volume and open interest of calls and puts, one can gain insights into the liquidity and interest in NVIDIA's options for specific strike prices.

The current volume for NVIDIA stands at 3,726,557, with the stock price down -0.74% at $419.12. RSI indicators suggest that the stock may be oversold. The next earnings report is expected to be released in 56 days.

Options trading carries inherent risks but offers higher profit potential compared to solely trading the stock itself. Skilled options traders manage this risk by staying informed, scaling their trades, following multiple indicators, and closely monitoring the markets. For those looking to stay updated on the latest options trades for NVIDIA, Benzinga Pro provides real-time alerts for options trades.

Definitions:
– Whale: A whale refers to an investor who holds a significant amount of a particular asset, often influencing market conditions.
– Bearish: A bearish stance implies an expectation of the price of a security or market to decline.
– Options: Options are financial derivatives that give traders the right but not the obligation to buy or sell assets at a predetermined price within a specific timeframe.
– Puts: Puts are options contracts that give the holder the right to sell assets at a specified price within a specific timeframe.
– Calls: Calls are options contracts that give the holder the right to buy assets at a specified price within a specific timeframe.

Sources:
– Benzinga Pro options scanner and data tracking