Nvidia Options Signal $175 Support Battle: Bull Call Spread vs. Short Put Risk

• Nvidia trades at $175.80, down 0.28% amid short-term bearish momentum
• Options data shows 107k open calls vs. 96.6k puts, with heavy call OI at $180–$200 strikes
• Block trade buys 26k NVDA20251219C175 calls as China demand and AI software bets heat up

Here’s what’s happening: The options market is locked in a tug-of-war around $175 support. With MACD (-2.23) and RSI (41.4) hinting at oversold conditions, Nvidia’s price action suggests a potential rebound—but only if bulls can hold key levels. Let’s break it down.

Bull Call OI vs. Bear Put Pressure: A $175 Crossroads

The options chain tells a story of cautious optimism. For this Friday’s expiry, 99,598 open calls at the $200 strike (NVDA20251219C200) and 81,493 at $180 (NVDA20251219C180) show investors are pricing in a 7–14% rally. That’s not just noise—it’s a bet on the $180–$200 range becoming a battleground.

But don’t ignore the puts: 85,671 open puts at $160 (NVDA20251219P160) act like a safety net for bears. If the stock cracks below $174.9 (today’s low), that put-heavy zone could accelerate selling. The block trade buying 26,000 NVDA20251219C175 calls adds intrigue—it’s like a whale saying, “I’ll take my chances if $175 holds.”

China Demand and AI Software: Fuel for the Bull Case

Nvidia’s recent news isn’t just noise. Strong H200 demand in China post-trade easing and the SchedMD acquisition (to boost open-source AI tools) align with the call-heavy options setup. Analysts like Mark Lipacis aren’t just raising price targets—they’re betting on a $352 future.

But here’s the catch: The $185–$187 resistance zone (30D support/resistance) isn’t just a number—it’s a psychological wall. If bulls can’t break through there, the rally might fizzle. And let’s not forget the bears’ argument: AMD’s AI chips and China’s slowing demand could turn this into a short-lived rebound.

Trade Ideas: Bull Call Spread + Stock Buy at $174.9

For options players: A bull call spread using NVDA20251226C180 ($180 strike) and NVDA20251226C190 ($190 strike) next Friday could capitalize on the $180 OI pileup. If the stock pops above $180, the spread’s capped profit (say, $10/share) balances risk with the $190+ frenzy.

For stock buyers: Consider entering near $174.9 (today’s low) with a stop just below $174.64 (lower Bollinger Band). If it holds, target $185 first—breaking that could trigger a retest of $187.86 (upper Bollinger Band).

Volatility on the Horizon: Watch the $175 Line

The next 48 hours will test Nvidia’s resolve. A close above $176.29 (previous close) could reignite the $180–$200 call frenzy. But a breakdown below $174.63 would turn the puts at $160 into a wildfire. Either way, the options market’s $175–$180 focus means this isn’t just a stock—it’s a binary bet on AI’s next chapter.