NVDA Options Signal $190 Bullish Battle: How to Play the AI Chip Giant’s Volatility

• Nvidia’s price dropped 1.02% to $181.51, pressured by competition from Google and Amazon’s AI chips but buoyed by $57B in quarterly revenue.
• Call open interest dominates at $190 and $185 strikes, with 155,421 and 118,920 contracts respectively—hinting at a potential breakout target.
• Block traders bought 26,000 NVDA20250919C175 calls last month, signaling long-term conviction despite near-term jitters.

Here’s the thing: Nvidia’s options market is locked in a tug-of-war between short-term profit-taking and long-term bullish bets. The stock’s 1.02% decline today masks a deeper story—call options at the $190 strike are the most watched, and for good reason. Let’s break it down.

The $190 Strike: A Magnet for Big Money

If you look at the options chain, the $190 call (NVDA20251205C190) is the most heavily bet on strike this Friday, with 155,421 open contracts. That’s not random. It aligns with the 30-day resistance zone of $186.01–$186.61 and the upper Bollinger Band at $196.72. Think of it like a magnet: traders are pricing in a potential rebound to $190 as a key inflection point.

But don’t ignore the puts. The $160 put (NVDA20251205P160) has 46,880 open contracts, suggesting some hedging against a drop below the 200-day moving average ($179.67). The block trades add intrigue—NVDA20250919C175 saw 26,000 calls bought for $296/share, a bet that Nvidia’s Blackwell sales will keep surging past 2025.

News vs. Options: A Tug-of-War

Nvidia’s recent headlines are a mixed bag. Google and Amazon’s AI chips are real threats, but the $57B quarterly revenue and 55.8% net margin tell a different story. The $268.93 price target by 2027 from analysts isn’t just optimism—it’s math. The options market reflects this duality: heavy call buying for $190–$200 strikes (next Friday’s NVDA20251212C200 has 60,864 OI) shows faith in Nvidia’s ecosystem dominance, while puts at $160–$175 act as a safety net for a pullback.

Actionable Trades for Today

1. Options Play: Buy NVDA20251205C190 (this Friday’s $190 call) if the stock breaks above $186.61. The RSI at 46.46 suggests oversold conditions, and the MACD histogram (-0.4) is narrowing—setup for a bounce. Target: $190–$195.
2. Stock Play: Enter long near $182.50 (the lower Bollinger Band at $172.81 is a hard stop). If the price holds above $180.91 (today’s low), aim for $186.61 (resistance) or $190.
3. Hedge: Buy NVDA20251205P180 (32,043 OI) to protect against a drop below $179.98 (200D MA support).

Volatility on the Horizon

Nvidia’s story isn’t just about chips—it’s about ecosystems. While Google and Amazon chip away at market share, Nvidia’s CUDA software and Blackwell sales are creating a moat. The options data and block trades suggest a “wait and see” approach: bulls are stacking up at $190, but bears aren’t entirely out of the woods.

Bottom line: Today’s $1.02% drop is a buying opportunity for those who believe in the long game. The $190 strike is the battleground—hold your fire until the price tests $186.61, and you might just ride the next leg higher.