Nvidia bets dominate US options market as AI fervor

Options on the Nvidia accounted for 25 cents of every dollar of premium – the price of the contracts – traded on single stock options in the US over the last month, nearly $3 billion in options premiums traded on the chipmaker's daily average, it showed. a Reuters analysis of Trade Alert data. During several recent sessions, Nvidia surpassed the Tisla as the most traded name in the options market of the day.

Nvidia briefly reached US$2 trillion in market value for the first time last Friday (23) – two days after releasing its quarterly results – driven by insatiable demand for its chips, which are highlighted in the technology craze. artificial intelligence generative.

Nvidia Hits $2 Trillion Valuation as AI Frenzy Takes Wall Street

Nvidia hit $2 trillion in market value on Friday, capitalizing on an insatiable demand for its chips that has made the Silicon Valley company a pioneer in the generative artificial intelligence (AI) boom.

Nvidia recently became the third largest listed company in the US in terms of market capitalization. Its shares represent a 4,5% weighting in the S&P 500, giving them a disproportionate influence on the movements of the broader index.

Nvidia options should remain popular with traders, “both from a hype and mechanical index standpoint,” said Garrett DeSimone, head of quantitative research at OptionMetrics. “It represents a large portion of the weighting of the S&P 500.”

As opções da ação têm atraído uma variedade de apostas, incluindo aquelas que protegem contra uma queda na ação em direção a US$ 350 até março e outras que dariam frutos se a ação estendesse sua ascensão meteórica em direção a US$ 900 e além nos próximos meses.

Nvidia shares rose 1,4%, to US$798,90, last Monday afternoon (26).

A number of other AI names also attracted heavy options volume, including Super Micro Computer and Arm Holdings. Nvidia shares are up about 60% year to date, while Super Micro Computer is up 200% and Arm is up 77%.

Nvidia is not the first company to captivate options players. Derivative bets on the electric vehicle manufacturer Tesla accounted for about half of all stock option premiums, indexes and ETFs in October 2021 as the company's shares soared. The options of Tesla continue to be an attraction that still frequently appears on the list of the most traded options on any given day.

Nvidia bets on Sovereign AI: A strategic shift for a world in transition

Nvidia CEO Jensen Huang emphasizes the concept of “sovereign AI” as a key aspect of the company's strategy, reflecting a shift toward countries developing their own artificial intelligence (AI) systems using localized data.

Embora o ritmo frenético de negociação nas opções da Nvidia possa diminuir agora que seu relatório de ganhos ficou para trás, os participantes do mercado disseram que o tema da IA provavelmente continuaria popular entre os investidores.

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