Nvidia Stock Refuses to Fall - Making Its Puts Attractive to Short Sellers

Nvidia (NVDA) stock still has not corrected, despite a massive 62% move up in the last 3 months. As of early trading on Aug. 1 NVDA stock is at $467.54, up from $289.10 on May 1. That makes its put options very attractive to short sellers, given how high put premiums are now.

We discussed this situation in a recent article on July 19, “Nvidia Stock Surges Again - Attracting Unusual Stock Options Activity.” A Barchart Unusual Stock Options Activity Report showed that large institutional trading activity had occurred in NVDA puts at the $460 strike price for the expiration period ending Aug. 25. At the time, NVDA stock was at $474.94.