Is NVDA Headed Even Lower?

Dividend Investing
by Jay Soloff
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Popular chipmaker Nvidia (NVDA) saw its share price drop nearly 8% in a day last week. News came out that the company wouldn’t be able to export some chips to China.  A trader used the opportunity to buy over $4 million worth of April 2023 puts. Although this was a very large put purchase, it’s challenging to say whether this is a bearish bet or a hedge. 

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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