Nvidia options traders bank on longer-term stock recovery

New York, Nov 12 - Options traders adjusted their bets on Nvidia after CEO Jensen Huang's resignation, positioning the stock for a longer-term recovery, according to market data. Huang's departure has sparked uncertainty over the AI chipmaker's future, leading to increased options volatility. However, the trading activity suggests investors are repositioning rather than abandoning the stock.

Nvidia's competitive edge and customer base are seen as resilient, with experts suggesting the turmoil may be a temporary leadership crisis rather than a fundamental shift in the AI investment thesis. The market is evaluating whether this is a short-term issue or a long-term change. Options traders are also betting on the stock rising above its current levels by the end of 2027, with some taking profits on downside hedges.

Nvidia's 90-day implied volatility has risen to about 52% from 33% a month ago, reflecting the heightened uncertainty leading up to the company's upcoming earnings report.