A single investor swapped an existing Nvidia call spread for a larger, more aggressive position on Monday, committing more than $100 million in premium to a wager that the chipmaker will recoup its recent losses within five months. The trade, executed roughly an hour after the open, stands out for its size and for the conviction it signals: the participant moved down the strike ladder to capture more upside per dollar of stock movement, effectively doubling down on a rebound before the company reports earnings.
The mechanics of the roll
SpotGamma data indicate the investor closed a 210/255-strike call spread valued around $42 million and replaced it with a 195/245-strike structure expiring February 19. The new leg required buying 52,000 calls at the 195 strike for roughly $57 million while selling the same quantity at the 245 strike to collect about $10 million, netting a $47 million debit. The position turns profitable above roughly $206, implying a 15 percent advance from current levels. A rally to the short strike at $245, a near 40 percent move, would match the all-time high set on October 6.
Why the strikes matter
Brent Kochuba, founder of SpotGamma, said the roll lowered the strike range to increase the position’s delta, meaning the options will now gain value faster if the shares rise. "They're trading the call spread here because the vol is expensive going into earnings," Kochuba said. "It's a significant increase in upside delta exposure." By selling the higher strike, the trader caps maximum gain but reduces the upfront cost, a structure that makes sense when implied volatility inflates outright call prices.
Volume confirms the bias
The 195-strike purchase ranked as the largest single options print on Monday’s tape. Of the top 20 trades by premium, 12 involved Nvidia contracts. Broader flow skewed bullish by midday: calls accounted for 57 percent of total options volume, and buyers initiated more than $660 million in call premium. The most active contract by sheer volume was the 180-strike call expiring the same day, which needed only a 1.2 percent intraday recovery to break even.