Published on

We need to talk about NVIDIA -- This is insane…

We need to talk about NVIDIA -- This is insane...

Last week, the flow of activity surrounding NVIDIA has been nothing short of absurd. The flow, similar to the GameStop (GME) and AMC Entertainment (AMC) stock squeeze, has been overwhelmingly bullish with an emphasis on far out-of-the-money call options. These call options, with strikes like 810, have been consistently hitting the tape and proving profitable. The amount of premium involved in these trades is staggering, with millions of dollars at play in just a single day. This incredible bullish flow is reflected in NVIDIA's impressive rally, with the stock up by 52% since the beginning of the year. Despite the stock being technically overextended, there is a strong belief that any dip will be quickly bought up, supported by key technical levels of support. Additionally, there have been notable put sell orders, indicating a willingness to benefit from the high implied volatility.

Keywords:

NVIDIA, flow, absurd, GME, AMC, squeeze, bullish prints, out-of-the-money calls, premium, rally, overextended, dip, support, put sell orders, implied volatility.

FAQ:

Q: What is the flow surrounding NVIDIA like? A: The flow has been overwhelmingly bullish, resembling the GameStop (GME) and AMC Entertainment (AMC) stock squeeze. Traders have been consistently buying far out-of-the-money call options, with strikes such as 810.

Q: How much premium is involved in these trades? A: The premium involved in these trades is significant, with millions of dollars at play in just a single day. Notable amounts of premium have been seen, such as 2.6 million and 1.3 million, just from Friday alone.

Q: Why is there such a bullish emphasis on NVIDIA? A: NVIDIA's rally this year has been impressive, with the stock up by 52% since the beginning of the year. This warrants a bullish sentiment and belief that any dips will be quickly bought up.

Q: Are there any notable put sell orders on NVIDIA? A: Yes, there have been put sell orders, indicating a willingness to benefit from the high implied volatility. These orders are seen as bullish, as they don't expect a significant drop in the stock price.

Q: What technical levels of support are important for NVIDIA? A: The 600 level has been highlighted as a key support level for NVIDIA, with a bias towards buying dips as long as it remains above this level. Additionally, a range around 693 to 700 has been identified as a potential support zone.

Q: Can this flow be profitable? A: The consistent and significant bullish flow surrounding NVIDIA has proven profitable for traders, with the far out-of-the-money calls hitting the tape and the stock rallying. However, as with any trading activity, there are risks involved.