Traders looking for Nvidia breakout

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Traders are positioning for a breakout in graphics-chip maker Nvidia.


optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,300 December 17 calls for $0.17 and the sale of an equal number of December 18 calls for $0.04. Volume was more than twice open interest at both strikes, indicating that new money was put to work on the long side.

Known as a bullish call spread , the trade cost $0.13 to open and will earn profit of 669 percent on a move to $18. (See our Education section for more on how to generate leverage with options.)

NVDA is down 0.74 percent to $16.10 in morning trading, hovering near the top of a range that's provided resistance for more than two years. Today's upside option trades reflect a belief that it will break out and keep going.

Total option volume is slightly above average in the name, according to the Heat Seeker. Puts outnumber calls by almost 8 to 1.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.



This article appears in: Investing , Options

Referenced Stocks: NVDA

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54,932,626
  • $16.50 ▼ 1.02%
46,253,261
  • $34.75 ▲ 0.90%
45,555,229
  • $130.28 ▼ 1.14%
39,616,045
  • $34.46 ▲ 1.32%
39,493,239
  • $8.72 ▲ 0.23%
38,489,383
  • $27.27 ▼ 1.30%
35,955,516
  • $18.14 ▲ 0.28%
33,142,871
    $18.27 unch
As of 5/29/2015, 04:15 PM


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