A $57 million bullish call spread on Nvidia signals high-conviction betting on a rebound to $243, as the trader rolled existing positions to lower strikes to capture more upside delta.
The largest options trade of the day was a $57 million bullish call spread buying 195-strike calls expiring Feb. 19 while selling 245-strike calls, targeting a rebound to the October 6th all-time high of $243. The trader rolled down from a 210/255 spread to gain higher delta, signaling increased conviction in a rally. However, this is one large trader's positioning and does not reflect fundamental news, so the price impact is likely modest and sentiment-driven.
A large options trader executed a $57 million bullish call spread on Nvidia, targeting a rebound toward the October 6th all-time high of $243. The position involves purchasing 52,000 195-strike calls expiring February 19, signaling increased conviction in a stock recovery.
Someone bought 52,000 Nvidia 195-strike calls expiring February 19 for about $57 million and sold the same number of 245-strike calls, cutting the cost by $10 million. The spread profits if Nvidia trades above around $206 by expiry, roughly 15% higher.
It signals that at least one large trader expects a rebound back toward the all-time high of $243 reached on October 6th, but it is a positioning decision rather than fundamental news, so it should not be taken as a guarantee of a rally.