NVDA Options Signal Bullish Bet at $190 as Stock Rebounds From 3.3% Drop – Here’s How to Play It

• NVDA trades at $177.72, down 3.3% from its 52-week high of $183.78 amid broader market jitters.
• Call open interest surges at $190 and $185 strikes, with 169,614 contracts at $190 (this Friday’s expiry) and 106,384 at $200 (next Friday).
• Block trades show 26,000 calls bought at $175 (expiring Sept 19) and 2,000 puts traded at $170 (Oct 24), hinting at strategic positioning.

Here’s the takeaway: The options market is betting on a rebound above $185, but technicals and volume suggest caution. If support holds near $179.40, NVDA could test $190—but only if buyers step in.Bullish Sentiment Locked in at $190—But Risks Lurk Below $177

The options chain tells a clear story: traders are piling into calls above $185. For this Friday’s expiry, the $190 strike leads with 169,614 open contracts, while next Friday’s $200 strike sees 106,384. That’s not just noise—it’s a vote of confidence in a short-term rebound. The put/call ratio (0.88) reinforces this, showing calls dominate by 12%.

But don’t ignore the risks. The stock is trading near its 200-day moving average ($155.55) and just broke below its 30-day support zone ($179.40–$180.00). If NVDA closes below $176.62 (intraday low), the $175 put strike (20,890 open contracts) could become a magnet for panic selling.

Block trades add intrigue. A 26,000-lot call buy at $175 (expiring Sept 19) suggests big players are hedging long-term bets. Meanwhile, a 2,000-lot put trade at $170 (Oct 24) hints at cautious positioning. These moves don’t scream “catastrophe,” but they do show hedging activity.

News Flow: AI Momentum Outweighs Regulatory Noise

Nvidia’s Q4 results—$12.5B revenue, 50% data center growth—back the bullish case. The new H100X AI chip and $5B buyback program are tailwinds. Analysts upgraded the stock to $500, and partnerships with AWS and GM signal expanding market share.

Yet the EU antitrust probe and recent 3% drop on rate hike fears can’t be ignored. The stock’s RSI (46.37) and MACD (-1.35) suggest oversold conditions, but a break below $176.62 could trigger a test of the $174.73 Bollinger Band low. Retail traders might panic, but institutional buyers seem ready to step in near $175.

Actionable Trades: Calls at $190, Stock Buy at $179.40

For options: Buy NVDA20251219C190 (next Friday’s expiry) if NVDA holds above $179.40. The $190 strike offers leverage if the stock rebounds—a 10% move to $200 would net ~50% on the call. Alternatively, a bullish call spread at $185–$200 could cap risk while capitalizing on the $190 OI buildup.

For stock: Consider entry near $179.40 (30-day support) with a stop below $176.62. If successful, the first target is $185 (30-day resistance), followed by $190. A break above $187.50 (Bollinger Band midpoint) would validate the bullish case.

Bearish angle: A short-term put spread at NVDA20251219P177.5 (20,890 OI) and $175 could work if the stock gaps down. But given the block trades and news flow, this is a lower-probability play.

Volatility on the Horizon: Positioning for NVDA’s AI-Driven Rebound

The next 72 hours will test NVDA’s resolve. If the stock holds above $179.40, the $190 call strikes could ignite a rally fueled by AI demand and buybacks. But a close below $176.62 would force a reevaluation of the $175–$170 support levels. Either way, the options market has already priced in a directional move—now it’s up to the fundamentals to decide which way.