Nvidia (NVDA) Options Signal $185 Call Overhang as $175–$180 Support Tests Bullish Breakout Potential

• Nvidia’s stock (NVDA) trades at $176.03, down 0.93% from its previous close of $177.69, with intraday volume surging to 35.96 million shares.
• Options data reveals a 0.95 call-heavy open interest ratio, with $180–$185 OTM calls dominating this Friday’s expiration, while $170 puts show significant bearish positioning.
• Block trades highlight a $7.7M call purchase at $175 (expiring 9/19) and a $950K put sale at $160 (expiring 1/16), signaling institutional confidence in near-term AI-driven momentum.

The confluence of bullish technicals, call-heavy options positioning, and AI partnership news paints a compelling case for NVDA’s near-term upside. With the stock perched above its 30D MA ($176.33) and RSI at 63.56, the $175–$180 support zone is critical. Options data suggests a high probability of a $185 breakout, while block trades hint at structured bullish bets.

Bullish Imbalance in OTM Calls and Strategic Block Trades

The options chain for this Friday’s expiration reveals a stark skew toward calls, with $180 (OI: 110,084) and $185 (OI: 87,503) strikes dominating open interest. This concentration implies institutional anticipation of a $185+ move, as traders are hedging against a potential AI-driven rally. Conversely, $170 puts (OI: 89,167) and $175 puts (OI: 47,192) indicate bearish positioning, but their lower OI compared to calls suggests limited conviction in a downside scenario.

Notable block trades amplify this narrative. A $7.7M purchase of 26,000 NVDA20250919C175 calls (expiring 9/19) signals large-capital inflows targeting a $175+ entry. Meanwhile, a $950K put sale at $160 (expiring 1/16) suggests structured volatility plays for long-term bullish exposure. These trades align with the stock’s 12-month 52% rally and its role as the AI sector’s bellwether.

News-Driven Catalysts and Market Sentiment

Nvidia’s recent partnerships with Intel and OpenAI are game-changers for its AI infrastructure roadmap. The $5B investment in Intel to co-develop x86 CPUs and the $100B OpenAI deal—funding 10 gigawatts of data centers—validate NVDA’s dominance in AI compute. These agreements not only secure long-term revenue streams but also reinforce institutional confidence, as reflected in the call-heavy options data.

However, risks persist. The $100B OpenAI investment could pressure margins if demand for lower-cost alternatives emerges. Additionally, the $175–$180 support zone is fragile; a close below $175.96 (intraday low) could trigger a test of the 200D MA at $141.64. Retail traders should monitor Bollinger Band dynamics, as a break above $183.51 (upper band) would confirm bullish momentum.

Actionable Trading Opportunities

For options traders, the $185 call (NVDA240920C185) expiring this Friday offers a high-probability play if the stock breaks $180. With 87,503 contracts in open interest, this strike is a liquidity magnet for a potential $185+ move. A $180 call (NVDA240920C180) is also attractive, given its 110,084 OI and alignment with the 30D MA. For next Friday’s expiration, the $192.5 call (OI: 31,556) provides a longer-term leveraged bet.

Stock traders should consider entry near $175.96 (intraday low) if the 30D MA holds. A breakout above $183.51 (Bollinger upper band) could target $187.5, where the $187.5 call (OI: 79,871) acts as a psychological resistance. A stop-loss below $175.96 would protect against a test of the $166.32 (lower Bollinger band) support.Volatility on the Horizon

The interplay of AI-driven demand, options expiration dynamics, and block trade activity sets the stage for a volatile September. With $185 calls acting as a de facto resistance and $170 puts as a bearish floor, traders should prepare for a $170–$190 trading range in the near term. The key takeaway: NVDA’s options market is pricing in a $185+ move, and the fundamentals are aligning to make it a reality. Positioning now could capitalize on the next leg of the AI bull run.