Trader places $57 million NVIDIA call spread for Feb 2027
Business
A trader just made a massive $57 million leg of a more than $100 million options trade on NVIDIA, betting the stock will climb by February 2027.
The move used a call spread, buying calls at $195 and selling at $245, which basically means they're hoping NVIDIA's price will go up but are capping their maximum gains.
NVIDIA must top $206 to profit
For this trade to pay off, NVIDIA needs to rise above $206. If it gets close to its previous high of $243 in October, the payout could be big.
Interestingly, more than half of all NVIDIA options traded that day were bullish, showing lots of optimism from investors, even with some uncertainty around leadership and upcoming earnings.