Nvidia Options Unusually Cheap Ahead of US-China Talks and Micron Report
Nvidia options have become unusually cheap ahead of two potential catalysts for the company's stock price. The first is the US-China talks between President Donald Trump and Chinese President Xi Jinping, where artificial intelligence is expected to be a key topic. Nvidia CEO Jensen Huang will reportedly attend a state dinner during Xi Jinping's visit.
Another factor that could impact Nvidia's stock is Micron's quarterly report on September 30. As a leading memory maker, Micron's results are seen as an indicator of demand for memory in artificial intelligence systems, which could potentially affect Nvidia as well.
Nvidia shares have risen 24% since the start of 2026 and are currently trading at $220. The implied volatility, determined by current option prices, is near a one-year low. This indicates that the market does not expect a significant stock move in the coming weeks, despite relatively low option prices.
Options traders suggest buying a reverse iron condor strategy, which involves purchasing a 210/220 put spread and a 235/245 call spread expiring on October 16. The total cost of this position is approximately $4.86, with a maximum loss of $486 if the shares remain within the $220 to $235 range at expiration.