NVDA Options Signal $180 Bullish Bias: How to Play the AI Chip Giant’s Volatility Play

• NVDA’s options market shows heavy call open interest at the $180 strike, with 122,670 contracts outstanding this Friday.
• Jim Cramer and analysts back NVIDIA’s AI dominance, but a director recently sold $44M in shares.
• MACD and RSI hint at short-term bearish pressure, but Bollinger Bands suggest a potential rebound near $172.62.

Here’s the core insight: NVDA is caught in a tug-of-war between short-term profit-taking and long-term AI optimism. The options data leans bullish on the $180 level, but technicals warn of near-term volatility. Let’s break it down.

Bullish Calls at $180 vs. Bearish Puts at $160: What’s the Play?

The options chain tells a story. For this Friday’s expiration, the $180 call (NVDA20251219C180) dominates with 122,670 open contracts—nearly double the next strike. That’s a red flag for bulls eyeing a breakout. Meanwhile, the $160 put (NVDA20251219P160) has 67,991 open contracts, hinting at a floor if sentiment flips.

Block trades add intrigue. A 26,000-lot call purchase at the NVDA20250919C175 strike (expiring Sept 19) suggests big money is hedging for a late-2025 rally. But the $160 put block trades (NVDA20251024P160) show caution. Think of it like a poker game: one player’s all-in bet vs. another’s insurance policy.

News Flow: AI Expansion vs. Shareholder Caution

NVIDIA’s recent news is a mixed bag. Jim Cramer’s bullish take and the H200 chip production push align with the call-heavy options data. But Harvey Jones’ $44M share sale raises eyebrows. Does it signal profit-taking, or a hint of overvaluation?

The key here is context. Cramer’s comments validate the AI hype, but the director’s move could pressure near-term sentiment. If the stock dips below $171.82 (today’s intraday low), watch for puts at the $165 strike to kick in. Conversely, a break above $174.89 (today’s high) could trigger a test of the $180 call wall.

Actionable Trades: Calls, Puts, and Price Levels

For options traders:

• This Friday: Buy the NVDA20251219C180 if NVDA closes above $174.89. The high open interest suggests a liquidity magnet at $180.
• Next Friday: Consider the NVDA20251226C185 as a longer-term play if the stock holds above $173.

For stock traders:

• Entry: Target $173 if NVDA rebounds from the lower Bollinger Band ($172.62).
• Targets: $180 (first call wall), then $185 (next resistance).
• Stop: Below $171.82 invalidates the bullish case.

Bearish players could sell the NVDA20251219P165 if the stock dips to $170, capitalizing on the put-heavy $160–$165 zone.

Volatility on the Horizon

NVIDIA’s story isn’t just about today’s price—it’s about tomorrow’s AI demand. The options data and news both point to a stock at a crossroads. Short-term technicals warn of a pullback, but the long-term call bias at $180 suggests a rebound is likely.

Your move? If you’re bullish on AI’s future, the $180 call this Friday is your best bet. If you’re hedging, the $165 put offers downside protection. Either way, NVDA’s next move could be a masterclass in volatility trading.