On CNBC's "Options Action," Mike Khouw said he has seen calls comfortably outpacing puts for the last 20 days in NVIDIA Corporation NVDA. Trading action on Tuesday continued in the same manner as calls outnumbered puts by about 1.75 to 1.
The company is going to report earnings on Wednesday and the options market is implying a move of 5% in either direction. That is consistent with the 5% that the stock has moved over the course of the last eight quarters.
The most active options were the May $650 calls. Over 6,800 contracts were traded for the average price of about $6. Nvidia's highs were just below $650 so it seems that buyers are targeting new highs for the stock after earnings.
See also: How to Buy NVIDIA Stock
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