How Are Options Traders Playing Nvidia's Post-Earnings Slump?

Core Viewpoint - Nvidia Corp reported a fourth-quarter earnings and revenue beat but saw its stock decline by 2.4% to $190, as investors focus on the long-term implications of AI infrastructure on hyperscaler spending and cash flow rather than the company's data center growth and revenue of $68.13 billion [1] Group 1: Earnings and Stock Performance - Nvidia's revenue for the fourth quarter reached $68.13 billion, exceeding expectations [1] - Despite the earnings beat, Nvidia's stock has been volatile, recently trading at $190, down 2.4% [1] - The stock has not surpassed the $200 mark since November, although it remains up 44% year-over-year [2] Group 2: Analyst Reactions - Following the earnings report, 12 analysts raised their price targets for Nvidia, with Melius Research setting a target of $380, which is double the current trading price [2] Group 3: Options Market Activity - Options trading activity has surged, with 924,000 calls and 538,000 puts traded, which is three times the average intraday rate [3] - The most popular options are the weekly 2/27 195- and 200-strike calls, with new positions being opened at the 200-strike [3] - Nvidia's Schaeffer's Volatility Scorecard (SVS) is at 24 out of 100, indicating that the stock has experienced lower volatility than what its options have priced in over the past year, making it a candidate for premium selling [3]