Following a slight dip after reports on OpenAI's growth targets, options traders are placing significant bullish bets on Nvidia's stock, anticipating a return to all-time highs.
Market Context and Recent Dip
On Tuesday, March 17, 2026, Nvidia's shares experienced a minor decline. This dip followed a report from the Wall Street Journal (WSJ) that raised questions regarding the growth projections of OpenAI and the broader artificial intelligence sector.
Options Trading Activity Signals Optimism
Options traders are capitalizing on the recent sell-off, viewing it as a buying opportunity to bet on a strong recovery for the chipmaker. The trading data reveals a notably bullish sentiment among market participants.
- Call vs. Put Volume: On Tuesday, the volume of call options significantly outnumbered put options, with call volume being more than double that of puts.
- Premium Allocation: Data from SpotGamma indicated that out of a total expenditure of $818 million, $648 million was spent specifically on call options, showing a heavy skew toward bullish bets.
Market Expectations and Volatility
Previously, Nvidia options had been relatively inexpensive compared to the VanEck Semiconductor ETF (SMH) due to the stock's tight trading range over the preceding year. This dynamic shifted on Tuesday as implied volatility increased alongside the stock price, drawing increased investor interest.
- Future Price Targets: Based on the pricing of the at-the-money straddle expiring May 29 (one week after the company's earnings report), traders are currently projecting a potential upward move of over 10% in Nvidia's stock by the end of next month.
(Source context: Jensen Huang, CEO of Nvidia Corp., was speaking at the Nvidia GTC conference in San Jose, California, on March 17, 2026.)
