

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.
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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.
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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