Options traders took profits on some bearish bets and added longer-term bullish positions in Nvidia after CEO Jensen Huang announced he was stepping down. The activity included an estimated $45.3 million to $55 million spent on January calls, while 90-day implied volatility rose to about 52% from roughly 33% a month earlier.
Options trading on Thursday suggested investors were repositioning for a recovery rather than abandoning Nvidia shares after Huang’s departure. Several large trades rolled bullish positions further into 2027, lowered upside targets and took profits on downside hedges, data from Susquehanna’s Chris Murphy showed.
One investor sold put options and bought cheaper ones, collecting about $18.9 million while retaining some protection against a further decline. Another paid about $18.8 million for call spreads that would pay off fully if Nvidia rose about 16% from current levels by March. Investors also bought about 50,000 January call options, spending an estimated $45.3 million to $55 million.
Nvidia shares were last down 4.84% at $165.40. The company’s 90-day implied volatility had risen to about 52% from roughly 33% a month earlier, reflecting uncertainty ahead of its earnings report next week. CFO Colette Kress is serving as interim CEO while the company searches for a permanent successor.
