Chinese officials had previously blocked shipments of the hardware
Nvidia Corp (NASDAQ:NVDA) stock is up 1.6% to trade at $187.81 at last glance, after Beijing gave Chinese companies — including Alibaba (BABA) — approval to prepare H200 chip orders. The company had previously halted production as officials blocked shipments of the hardware, but Nvidia now expects an order of about 1.5 million chips, totaling nearly $30 billion in revenue.
The stock has pulled back since its late Oct. 29, record high of $212.19, but the 160-day moving average has provided long-term support, containing pullbacks in late December and earlier this month. Year over year, NVDA sports a 27.6% lead.
So far today, 821,000 calls and 481,000 puts have exchanged hands. The most popular contract is the weekly 1/23 190-strike call, followed by the 187.50-strike call in the same series, with positions being opened there and set to expire after the close.
Options are looking extremely well-priced for the AI powerhouse. NVDA’s Schaeffer’s Volatility Index (SVI) of 37% sits higher than just 3% of all readings from the past year.