Nvidia (NVDA) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 5–12 Expirations

• NVDA surges 1.16% to $181.67, trading near 30D support at $179.98–$182.24.
• Put/Call OI ratio at 0.88 favors calls, with heavy call OI at $190 and $200 strikes.
• Block trades show 26,000 calls bought at $175 (expiring 9/19), hinting at strategic accumulation.

Here’s the takeaway: Options data and recent news suggest a bullish bias, but short-term technicals warn of volatility. Let’s break it down.

Bullish OI Clusters and Whale Moves: What’s Cooking at $190 and $160?

Options market sentiment is leaning heavily into two zones: calls at $190 and $200, and puts at $160. For this Friday’s expirations, the $190 call has 133,137 open contracts—nearly triple the $160 put’s 51,431. This imbalance suggests institutional players are pricing in a potential breakout above $190, possibly fueled by Nvidia’s recent AI chip launch and Q4 earnings pop.

But don’t ignore the puts. The $160 strike’s high open interest acts as a floor marker. If NVDA dips below $180, that level could trigger a bounce—or panic. And the block trades? That 26,000-call buy at $175 (expiring 9/19) isn’t noise. It’s a whale hedging a long-term bet, or maybe front-running a product launch. Either way, it shows conviction.

News Flow: Fuel for the Fire or a Speed Bump?

Nvidia’s Q4 results—$12.5B revenue, 35% YoY growth—back up the options optimism. The new H200 AI chip and CloudTech partnership are clear tailwinds. But the EU antitrust probe is a wildcard. Regulatory risks rarely kill stocks outright, but they can create sharp pullbacks if headlines spike.

Here’s the rub: Retail traders love the AI story, and institutions are doubling down. That’s why the stock’s 8% post-earnings surge isn’t just a reaction—it’s a signal. The market is pricing in $200+ territory by year-end, but the 200D MA at $154.30 still looms as a psychological floor.

Trade Ideas: Calls for the Ride, Puts for the Safety Net

For options:

• Buy the $185 call (expiring 12/5) if NVDA holds above $182.24. Target $190–$195.
• Sell the $200 call (expiring 12/12) as a covered call if you’re long NVDA. Premium capture if it stays below $200.
• Buy the $165 put (expiring 12/12) as insurance against a 10% drop.

For stock:

• Entry near $180.50 if price tests support at $179.98–$182.24.
• Target $188–$192 if RSI (currently at 36.4) rebounds.
• Stop-loss below $177 to avoid a breakdown into the lower Bollinger Band at $172.55.

Volatility on the Horizon: Balancing Bullish Momentum and Risks

Nvidia’s story is a rocket ship with seatbelts. The options data and news flow scream upside potential, but technical indicators like the bearish MACD (-2.78) and RSI near oversold levels warn of a possible rebound. The key is timing: if the stock holds above $180, the $190–$200 calls could be your tickets to a 10–15% move. But if it cracks $177, the puts at $165 will become critical.

Bottom line: This is a high-conviction trade for AI believers, but don’t go all-in blind. Use the options as leverage and the support/resistance levels as your guideposts. The next 72 hours could tell us if this is a breakout or a blip.