NVDA Options Signal $200 Call Frenzy: Here’s How to Ride the AI Megatrend (Jan 2, 2026)

• NVDA surges 2.49% to $191.14, breaking above its 30D and 200D moving averages.
• Call options dominate with a 14.4% higher open interest than puts, led by $195 and $200 strikes.
• Block trades show whales buying 26,000 calls at $175 strike (expiring Sept 2025) and $160 puts (expiring Jan 16).

The stock is dancing on a tightrope of AI hype and institutional bets—but the options market isn’t just watching. It’s placing its chips on a breakout above $200. Let’s break down why this could be your most actionable trade of the year.The Options Market’s Bullish Bet

The options chain for NVDA is a goldmine of clues. This Friday’s call open interest peaks at $195 (87,621 contracts) and $200 (58,891), while puts lag with the most interest at $185 (34,291). The next Friday’s data tells a similar story: $200 calls (76,922) and $192.5 calls (64,161) dominate. This isn’t just retail FOMO—it’s a coordinated push by big players to lock in upside potential.

The put/call ratio of 0.875 (calls > puts) reinforces the bullish tilt. But don’t ignore the risks: the $185 and $180 puts (OI: 34k+ each) suggest some hedging activity. If NVDA stumbles below its 200D support at $179.98, those puts could trigger a short-term selloff.

Block trades add intrigue. The NVDA20250919C175 call (26,000 contracts bought for $7.6M) and NVDA20260116P160 put (1,250 contracts for $951K) hint at a “buy the dip, sell the rally” strategy. Big money is hedging a long-term bet while preparing for volatility.

How the News Fuels the Fire

Nvidia’s recent headlines are a rocket booster for this trade. The $20B Groq acquisition isn’t just a headline—it’s a strategic move to dominate AI inference, a $1T market by 2030. Meanwhile, the H200 chip production ramp for China (2M units ordered) addresses a critical revenue leak.

Analysts like Sustainable Growth Advisers are doubling down, citing $57B Q3 2025 revenues and a $5B Intel partnership. These aren’t just numbers—they’re signals that Nvidia’s AI moat is widening. But here’s the catch: geopolitical tensions could still disrupt China sales. The options market isn’t pricing that in yet, so $160–$170 puts might be undervalued for risk-averse traders.

How to Position for AI’s Next Leg HigherFor options traders:

• This Friday: Buy NVDA20260102C195 (strike $195) if NVDA closes above $192.90. The RSI at 53.16 suggests momentum isn’t exhausted yet.
• Next Friday: Buy NVDA20260109C200 (strike $200) if the stock holds above its 30D support at $180.73. The Bollinger Bands (upper: $193.50) give you a tight target.

For stock traders:

• Entry near $182.24 (200D resistance) with a stop-loss below $179.98. Target: $195 (current call strike).
• Bearish play: Short NVDA if it breaks below $180.73, targeting $175–$170 with a tight stop at $182.50.

Volatility on the Horizon

The next two weeks will test Nvidia’s resolve. If the stock holds above $185, the $200 call frenzy could turn into a self-fulfilling prophecy. But watch for a breakdown below $175—those deep puts (like NVDA20260116P160) might become your lifeline.

This isn’t just a stock trade—it’s a bet on the future of AI. And right now, the options market is screaming: "The future is bullish."