Nvidia bets dominate US options market as AI fervour grows
Options on artificial intelligence darling Nvidia accounted for 25 cents of every dollar of premium — the price of contracts — traded in US single-stock options over the past month, nearly $3 billion in options premium traded in the chipmaker's options every day on average, a Reuters analysis of Trade Alert data showed. During several recent sessions, Nvidia surpassed Tesla as the option market's most heavily traded name for the day.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitMITMIT Technology Leadership and InnovationVisitNvidia briefly hit $2 trillion in market value for the first time on Friday — two days after it released quarterly earnings — riding on insatiable demand for its chips which feature prominently in the generative AI craze.
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-108029352»>
Nvidia recently became the third-largest U.S.-listed company as measured in market capitalization. Its shares command a weighting of 4.5% in the S&P 500, giving them an outsized influence on the broader index's moves.
Nvidia's options should remain popular with traders, «both from a hype and mechanical index perspective,» said Garrett DeSimone, head of quantitative research at OptionMetrics. «It represents such a large portion of S&P 500 weighting.»
The stock's options have drawn a range of bets, including ones guarding against a drop in the stock toward $350 by March and others that would bear
