NVDA's $185 Call Sees Over 40,000 Contracts Traded—Retail Traders Drive Activity as Stock Climbs 3.11%
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Record Call Volume on Dec 2025 $185 Option Grabs Attention
NVIDIA’s December 5, 2025, $185 call option exploded in trading volume early this morning. As of 09:55 AM, more than 40,549 contracts had changed hands—representing a striking 12.6% of all NVDA options traded so far today. That level of concentrated volume stands out in a market where activity is typically more dispersed.
Retail Activity Surges—62% of Trades Attributed to Smaller Participants
What’s even more interesting is that a substantial 62% of these trades are being executed by smaller, likely retail, traders. Institutional or 'pro' accounts made up 38% of the activity. Additionally, the order flow has a slightly bearish tilt, with 52.5% of contracts being sold versus 47.5% bought. This kind of retail-driven surge suggests widespread interest—or perhaps hedging—by smaller investors in response to recent price movements.
| Option Contract | Volume | % of Total Volume | VWAP Price | IV (Last) | Change in IV | % Bought | % Sold | % Large Trade | % Retail |
|---|---|---|---|---|---|---|---|---|---|
| Dec-05-25 185 Call | 40,549 | 12.6% | 2.63 | 32.8 | -5.9% | 47.5% | 52.5% | 38% | 62% |
Implied Volatility Falls 5.9%—Signals Moderate Confidence
The option’s implied volatility (IV) tells a story of cooling expectations. At 32.8, IV has fallen nearly 6% from the previous session, hinting that traders may view the recent stock rally as less likely to drive large price swings in the near term. Volatility began the day at 31.4, dipping as low as 30.9 and peaking at 33.7 before settling higher—but still well below yesterday’s close. Historically, sharp IV declines after large moves often indicate traders expect calmer markets ahead, despite heavy option volume.
Option Pricing Moves in Sync With Underlying Rally
Stock momentum was another driving factor. NVDA surged $5.59 (3.11%) to $185.51 at the time of analysis. That propelled the $185 call’s last trade price to $3.10, up from $1.23 at yesterday’s close and well above its $1.60 open. Highs reached $3.45. This price movement, combined with heavy call trading, often signals either speculative upside bets or hedging against continued gains. The high retail participation could reflect traders looking for leveraged exposure to NVDA’s momentum—or protecting profits.
Open Interest Climbs Sharply, But True Positioning Remains Unclear
As of the morning of December 1st, open interest on this contract had already risen by 19,921 contracts to 77,486, pointing to robust demand in the prior session. However, because open interest isn’t updated intraday, we won’t know if today’s surge is mostly new buying, selling, or a rotation of old positions until the next business day. The market’s real commitment will become clearer then.
Key Takeaway: Cautious Optimism Dominates Despite Retail Surge
The huge spike in $185 call activity reflects strong retail enthusiasm for NVDA as the stock climbs higher, but falling volatility suggests expectations are moderating. With option pricing and trade flows both signaling mixed but active sentiment, traders may want to watch how open interest updates tomorrow for a clearer picture of whether these bets are for a breakout—or simply the unwinding of earlier risk. For now, cautious optimism—with a retail flavor—seems to be setting the tone in NVDA’s options pit.
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