NVIDIA Options Traders Bet Big on $220 Breakout

NVIDIA's stock has been on a rollercoaster ride, but recent options activity suggests investors are betting big on its future. On Wednesday, NVIDIA (NVDA.US) gained 3.43% to close at $219.20, narrowly missing the $220 level that has become a key battleground for the tech giant.

The AI sector as a whole rebounded, thanks in part to SpaceX's announcement that it will use NVIDIA chips in its AI infrastructure. Despite Advanced Micro Devices' (AMD.US) better-than-expected earnings, investor expectations were still high, leading capital to rotate back into NVIDIA.

Options traders are signaling bullish sentiment, with 3.73 million call contracts traded today, compared to just 1.51 million put contracts. The Put/Call Ratio has dropped to 0.41, indicating a strong preference for calls over puts.

The $220 strike price is the largest Call Wall, while the $210 strike is the largest Put Wall. This suggests that investors are positioning themselves for a continued advance rather than chasing speculative upside.