NVIDIA Corporation ended the latest session at USD 213.90, rising 0.82%.

Large options trades in NVDA leaned bearish despite the modest stock gain. A $1.44 million bear call spread capped upside expectations, while a $2.18 million long-dated put purchase signaled outright downside protection. The combination of premium-collecting upside limits and convex put buying suggests institutions were more focused on hedging and guarding against a pullback than on chasing further gains.

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Options Indicators

NVDA’s implied volatility is 38.24%, and with an IV percentile of 11.16%, current option volatility sits on the low side relative to its own recent history, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 0.86 further suggests implied volatility is running below historical realized volatility, reinforcing the view that premium levels are relatively subdued at the moment.

The Call/Put volume ratio is 1.61.

Large Trades

A bear call spread with a $1.44 million net credit stood out as one of the day’s largest displayed trades, built by selling 2,000 Dec. 18, 2026 $225.00 calls and buying 2,000 Dec. 18, 2026 $250.00 calls. With NVDA referenced at $213.90, both strikes were out of the money, and the structure caps upside exposure while collecting premium upfront. This is a classic bearish-to-neutral income trade: the seller is effectively expressing the view that NVDA is unlikely to rally meaningfully above $225.00 by expiration, while the long $250.00 call serves as protection against an outsized upside move.

A PUT buy worth $2.18 million was the other major displayed trade, consisting of 2,000 Mar. 19, 2027 $190.00 puts purchased outright. With the stock above the strike at $213.90, the put was out of the money at entry, making this a downside-focused position with convex exposure if NVDA weakens over time. Strategically, this looks like a clear bearish directional bet or portfolio hedge, as the buyer paid premium for long-dated protection against a decline below $190.00. Overall, the large-trade flow leans bearish: the featured orders combined a premium-collecting upside cap through a bear call spread with a sizable outright put purchase, and the broader block activity also showed heavier bearish than bullish positioning, indicating institutions were more focused on downside protection and limiting upside expectations than on chasing further gains.

Strategy Reference

For a low assignment probability, a covered call seller could consider a strike above the 250.00 level, or use a wider bear call spread such as selling the 240.00 call and buying the 260.00 call to reduce margin requirements while still collecting premium.