$15.5 Million in NVDA Call Sweeps Reveals Strong Short-Term Bullish Sentiment

Two large bullish sweep call trades were executed for NVIDIA (NVDA) $120 strike options expiring on May 30, 2025, totaling 10,783 contracts with a combined premium outlay of $15.5 million. The trades were executed at the ask price, suggesting strong buying interest, and both were significantly in-the-money (spot at ~$135). Although the V/OI ratio of 0.31 suggests the trades aren’t entirely fresh, the use of sweep orders highlights a sense of urgency—likely from institutional players seeking to capture longer-term upside. 

It’s also reasonable to infer that traders have been building positions in this contract in the days leading up to NVDA’s earnings call, which would naturally result in elevated open interest. Given the size and structure of these orders, they point to short-term bullish conviction in NVDA’s sustained price appreciation into 2025.

Volume and Open Interest Data

The NVDA $120 call options expiring May 30, 2025, experienced a sharp increase in trading activity on May 22nd and May 27th, with daily volumes exceeding 22,000 contracts. A substantial jump in open interest by 13,373 contracts on May 23th confirms that many of these trades were newly opened positions rather than short-term flips. 

Additionally, the contract price climbed from $12.60 to $15.65, while implied volatility spiked from 70.81% to 101.64%. These simultaneous rises signal intensified market interest. Together, these indicators point to a strong influx of short-term bullish sentiment, likely driven by institutional investors positioning for continued upside in NVDA.

More Notable Trades Observed

Bullish sentiment surrounding NVDA ahead of earnings extended beyond the near-term outlook, signaling strong investor confidence in the company’s longer-term prospects. In particular, we observed a significant options trade targeting the March 20, 2026 expiration at the 110 strike price. This trade, executed as a sweep order—often indicative of urgency and institutional interest—amounted to a total premium of approximately $4.2 million. 

The transaction involved 1,100 contracts, each purchased at a premium of $38.60. This pricing reflects an implied volatility of 48.57%, which is relatively elevated and suggests heightened expectations for future price movement. Notably, the volume from this single trade accounted for roughly one-third of the total open interest for this contract, underscoring its potential impact on market sentiment and highlighting the scale of this investor’s conviction.

What's Happening with NVDA

NVIDIA (NASDAQ: NVDA) is poised to announce its first-quarter fiscal 2026 earnings after market close on May 28th, 2025. Analysts anticipate revenue of approximately $43.28 billion, marking a 66% increase year-over-year, and an earnings per share (EPS) of $0.85, reflecting a 39% rise from the previous year.

Despite facing challenges from U.S. export restrictions on AI chip sales to China, which could result in up to $5.5 billion in lost revenue per quarter, NVIDIA continues to experience robust demand in other markets. The company is adapting by developing a more affordable variant of its advanced AI GPUs specifically for the Chinese market. These efforts are driven by a desire to preserve its market presence despite facing regulatory challenges.

Investor sentiment remains optimistic, with traders making bullish bets on NVIDIA’s stock ahead of the earnings report. Options activity suggests expectations of a significant post-earnings movement, with potential stock price swings of up to 7%.

About NVDA

NVIDIA Corporation (NVDA) is a leading technology company known for designing and manufacturing high-performance graphics processing units (GPUs). These GPUs are primarily used in gaming, professional visualization, data centers, and automotive markets. Founded in 1993, NVIDIA revolutionized computer graphics with its invention of the GPU and has since become a key player in the artificial intelligence (AI) space. 

Its GPU architectures, such as the GeForce, Quadro, and most recently the Hopper and Grace platforms, power everything from advanced video games to deep learning systems, AI model training, and autonomous vehicle technologies. NVIDIA also provides software platforms like CUDA and AI-focused solutions for industries ranging from healthcare to robotics.

Analyst Ratings

The analyst sentiment for NVIDIA (NVDA) as of late May 2025 remains largely positive, with several institutions maintaining bullish outlooks. CFRA rates NVDA with a strong 4-star (Buy) recommendation. Market Edge upgrades its stance to Long from a previously more neutral rating. Argus maintains a Buy rating, reinforcing confidence in the stock. 

Morningstar holds a more moderate view, assigning a 3-star rating, indicating fair valuation. LSEG (London Stock Exchange Group) has upgraded its rating to Outperform, reflecting expectations of superior market returns. Lastly, Schwab Equity Ratings assigns NVDA a B grade, signaling a moderately bullish stance. Overall, this consensus highlights continued optimism in NVDA’s growth potential, particularly ahead of its upcoming earnings and AI-related advancements.

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