Trump Phone Call Fuels 30% Upside Signal in Nvidia Options
A phone call from former President Donald Trump prompted traders to price Nvidia shares for a potential 30% rally, driving a sharp rise in call‐option demand. Open interest in near-term Nvidia calls surged as markets positioned for a possible policy announcement affecting AI chip sales.
1. Trump Call Spurs Market Repricing
Unexpected comments in a recent phone conversation involving Donald Trump led traders to reprice Nvidia shares with a 30% upside target, reflecting speculation about favorable AI or trade policy interventions. The move marks one of the most pronounced single-day shifts in Nvidia’s options market this quarter.
2. Surge in Call‐Option Activity
Open interest in Nvidia call options expiring within two months jumped by over 50%, indicating heavy positioning for a sharp upside move. Traders focused on strikes 30% above the current share price, betting on a significant push by policymakers toward domestic chip manufacturing support.
3. Implications for Nvidia Valuation
If policy tweaks materialize as speculated, Nvidia’s revenue outlook could improve through expanded AI deployments and reduced import barriers. However, the rally signal hinges on government action, leaving valuations at risk if the anticipated directives fail to emerge.