Nvidia (NVDA) Options Signal $190 Call Contention as Downside Risks Emerge—Here’s How to Position for Volatility

• NVDA trades at $179.04, down 2.58% on heavy volume (99.4M shares), with Bollinger Bands pinning price near the lower band at $174.74.
• Options data shows a 0.88 put/call open interest ratio, with $190 and $185 calls dominating this Friday’s OI, while $170 puts hint at bearish hedging.
• Block trades reveal a $2.6M call buy at $175 (expiring 9/19) and a $950K put sell at $160 (expiring 1/16), signaling mixed near-term positioning.

Look at today’s data, and you’ll see a stock caught between a bullish technical setup and a bearish options crowd. NVDA’s price action shows a short-term rebound attempt, but the options market is pricing in a 12% downside risk to $170. Here’s why traders should watch the $190 call wall—and how to play the volatility.

The $190 Call Wall vs. Bearish Put Skew: A Battle for Control

The options chain tells a story of conflicting narratives. This Friday’s top OTM calls ($190, $185, $200) hold 447,088 open contracts, while puts ($155, $170, $175) total 112,233. The 4:1 call/put imbalance suggests short-term bullish bets, but the $170 put’s 33,069 OI acts as a floor.

The real drama? Next Friday’s $200 call (OI: 106,384) and $100 put (OI: 76,827) create a wide options spread. If NVDA breaks above $185, the $200 call could ignite a rally. But if it dips below $176.62 (intraday low), the $170 put becomes a critical support level.

Block trades add nuance. A $2.6M buy of 26,000 NVDA20250919C175 calls (expiring Sept 19) hints at long-term bullish positioning, while a $950K sell of 1,250 NVDA20260116P160 puts (expiring Jan 16) suggests hedging against a deeper correction. These moves signal a split between near-term traders and long-term holders.

Oracle’s Earnings: The Catalyst Behind the Sell-Off

Oracle’s Q2 miss and $15B capital spending hike triggered a sector-wide selloff, dragging NVDA down with it. Oracle’s $300B OpenAI deal and $18B bond sale have investors questioning AI infrastructure ROI. For NVDA, this means reduced near-term demand from a key client—and a 3.6% price drop to reflect that risk.

But the news isn’t all bad. Nvidia’s $2B Synopsys investment and Applied Digital’s 208% portfolio gain show it’s not all doom. The market’s reaction, though, is a short-term correction, not a fundamental shift. Traders are now betting on whether Oracle’s AI spending will stabilize or spiral into a debt crisis.

How to Trade the Volatility: Calls, Puts, and Precision Entries

For options:

• Bullish Play: Buy the NVDA20251219C190 (next Friday’s $190 call) if NVDA rebounds above $180. The 106,384 OI suggests a liquidity sweet spot. Target a 10% move to $209.
• Bearish Play: Buy the NVDA20251219P170 (next Friday’s $170 put) if price breaks below $176.62. The 50,455 OI at $160 puts adds a safety net. Target a 7% drop to $160.

For stock:

• Entry: Consider buying near $179 if price holds above the 200D MA ($155.55) and Bollinger Band lower bound ($174.74).
• Stop-Loss: Below $176.62 invalidates the bullish case.
• Targets: $185 (30D support) for a rebound, or $190 (call wall) for a breakout.

Volatility on the Horizon: A Sector-Wide Crossroads

The next 72 hours will test NVDA’s resilience. If Oracle’s debt concerns ease, the $190 call wall could drive a rebound. But if AI spending fears intensify, the $170 put becomes a critical line in the sand. Either way, the options market is pricing in a 12–15% move by next Friday.

Traders should watch the RSI (46.37) and MACD (-1.35) for confirmation. A bullish crossover in MACD would validate the rebound case, while a break below 40 on RSI signals deeper pain. Position yourself with the NVDA20251219C190 or NVDA20251219P170 to ride the volatility—or wait for a clearer signal from Oracle’s debt markets.