Something very unusual is happening with Nvidia options
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- Nvidia stock is trading around $222, and its short‑dated options show a $14 implied move by week’s end, with out‑of‑the‑money calls priced higher than puts—a rare positive skew.
- $245 call option is $23 out‑of‑the‑money but trades at $1.15, while the $205 put, $17 out‑of‑the‑money, costs less, creating a price gap that traders can exploit.
- Zero‑cost collar strategy: sell the $245 call at $1.15 to fund a $205 put, capping upside at $23 (+10.4%) and limiting downside to $17 (−7.7%).
- $210/$240 call spread: buying the spread for about $13 yields a defined‑risk bet with a $17 profit if Nvidia jumps, and a $13 loss if it stays flat, offering ~30% more upside than downside.
Why it matters: Option traders and Nvidia shareholders can lock in a $23 upside and limit downside to $17, as the market’s rare positive skew signals heightened earnings‑driven volatility.
