NVIDIA closed at USD 238.90, reflecting a 2.12% gain.

Large options activity showed a defining mix of premium collection and directional caution. A $23.40 million double short put sale pointed to a willingness to defend lower strike zones, while a $3.20 million bear put spread expressed a more explicit downside view. The overall tone was defensive, with institutional flow tilted toward put structures rather than aggressive upside positioning, even as the stock posted a modest daily gain.

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Options Indicators

NVIDIA currently has an implied volatility of 36.88%, and with an IV percentile of 7.17%, its recent volatility is sitting on the low side relative to its own historical range, indicating that options are cheaply priced at the moment. At the same time, the IV/HV ratio of 1.50 shows implied volatility still carries a premium over realized volatility, but overall the options market is not in an elevated pricing regime.

The Call/Put volume ratio is 1.46.

Large Trades

A premium-collection put combination worth $23.40 million was the standout trade, structured as a same-direction double short put position expiring January 15, 2027. The trader sold 25,000 contracts of the 220.0 put and 25,000 contracts of the 170.0 put, with both strikes out of the money versus the $238.9 reference stock price, generating a net credit of $23.40 million. This is a short put spread-style premium-selling structure using two sold puts rather than a defined-risk vertical, and its intent is best understood as income generation tied to a view that NVIDIA will remain above those lower strike zones or at least avoid a major breakdown into expiration. Because both legs are short puts, the trade carries neutral-to-bearish undertones in the bulk-flow framework: it is not an outright bearish crash bet, but it does reflect willingness to absorb downside exposure in exchange for premium, which often signals expectations for range-bound trading with downside risk viewed as manageable.

A bearish put spread with a net debit of $3.20 million was the second key trade, built by buying the 240.0 put and selling the 170.0 put for November 20, 2026 expiration. With NVIDIA at $238.9, the long 240.0 put is slightly in the money while the short 170.0 put is out of the money, making this a classic bear put spread positioned for downside over the intermediate term. The use of a net debit structure shows the trader was willing to pay premium for directional downside exposure, while capping maximum profit below 170.0 in exchange for lower cost than a naked long put. Strategically, this points to a defined-risk bearish bet rather than simple hedging income activity, and the strike selection suggests concern about meaningful downside from current levels, though not necessarily an expectation of a collapse far beyond the lower short strike.

Overall, the large-trade picture is bearish. The most dominant flow was the massive premium-selling put combination, which implies expectations for stabilization above deep downside levels but still reflects substantial downside-linked positioning, and that was reinforced by a sizable bear put spread that directly expressed a negative directional view. Broader block activity also leaned toward puts and downside structures rather than aggressive upside chasing, indicating that institutional participants were either positioning for weakness or using option structures that benefit from capped upside and elevated caution. Taken together, the figures point to a market tone that is defensive and skewed bearish on NVIDIA.

Strategy Reference

Given low implied volatility and a bearish institutional skew, a defined-risk bear put spread such as buying the 230.0 put and selling the 190.0 put for a nearer-term expiration can position for moderate downside while limiting margin requirements versus a naked long put.