Nvidia's Rough Week: Analyzing NVDA Technical Strength & Options

Core Viewpoint - Nvidia's shares have declined approximately 8% this week, influenced by CEO Jensen Huang's comments regarding China's advancements in AI technology, which initially unsettled investors before he clarified his stance [1][5]. Company Performance - Nvidia's performance has been relatively weaker compared to the semiconductor sector, with its stock up less than 26% year-to-date, while the Semiconductor ETF (SMH) has risen about 32% [3]. - Competitors such as Broadcom, AMD, Intel, and Taiwan Semiconductor have shown stronger performance, with increases ranging from 44% to 88% [4]. Technical Analysis - Nvidia's stock is currently trading around $186.99, maintaining above the critical support level of $185, which was previously a resistance point [7]. - The stock has not tested the lower level of $177 established in prior weeks, indicating some resilience despite recent pressures [6]. Options Activity - Options trading for Nvidia has been notably active, with over 4.7 million contracts traded, of which approximately 65% were call options, indicating bullish sentiment [8]. - The expected price movement for Nvidia by the November 21st expiration is around 11.2%, with significant levels identified at $165 for downside and $207 for upside potential [9][10]. - The most active strike price for options is at $180, highlighting a key area of interest in the options market [12].