Back to News
marketsJune 3, 20262 min read

NVIDIA Options: $1.8 Billion at Stake — What the Pros Are Betting Today

Over the past 48 hours, NVIDIA options worth $1.8 billion were bought — the largest tech options setup since Broadcom earnings last week.

Sophie Schneider
Sophie Schneider·Head of Research

NVIDIA reports earnings today — and the financial world is holding its breath. Anyone who bought the stock five years ago has seen a 10x return. But that's exactly what makes today so critical: can the growth continue, or is the big correction coming?

The Story Behind It

Two days ago, hedge funds began placing massive bets on NVIDIA. A total of $1.8 billion flowed into options — both bets on a rise (calls) and a fall (puts). The stock currently trades at $218. The pros are expecting a brutal move: either the stock explodes to $230+ or it drops below $200.

Why? NVIDIA sells the most important chips for artificial intelligence. Every major tech company — from Google to Microsoft to Meta — needs NVIDIA's hardware. The question is: will demand stay this high, or have customers bought enough?

What This Means for You

If you hold NVIDIA shares, today will be decisive. Earnings numbers come after market close (US time). Pros expect a move of at least 8% — that's almost $20 per share.

If you don't own NVIDIA yet but are considering it: wait for the numbers. The options bets show that even the pros don't know which direction it's heading. That's a sign of extreme risk.

How the Pros Are Reacting

Hedge funds are buying in both directions today: they're betting on gains AND losses. This is called a "straddle" — a strategy for expected large moves without a clear direction. Anyone who bought a straddle yesterday evening needs at least an 8% move today to profit.

Some large funds have also closed their positions entirely and are waiting on the sidelines. This shows: even the pros respect this earnings round.

First Steps for Beginners

If you're just starting to get interested in the stock market: NVIDIA is a fascinating example of how fast money can move. But it also shows why beginners shouldn't jump in during such volatile events.

Better approach: watch what happens today, learn from it, and only enter when you understand why the stock moved. Those who buy without understanding usually lose.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not an indicator of future results.

Sources

BeInOptions Research

Frequently Asked Questions

Why are hedge funds betting $1.8 billion on NVIDIA?

NVIDIA reports earnings today. The stock has risen 1000% in 5 years. Pros expect an extreme move — either an explosion to $230+ or a drop below $200. The options bets show: nobody knows the direction, but everyone expects drama.

What is a straddle?

A straddle means: you bet on both a rise AND a fall simultaneously. You buy a bet on gains (call) and one on losses (put). It only becomes profitable if the stock moves extremely — regardless of direction.

Should I buy NVIDIA now?

If you're a beginner: no. The options show extreme uncertainty. Even hedge funds don't know what will happen. Better: watch what happens today, learn from it, and decide later with more knowledge.

Sophie Schneider

Author

Sophie Schneider

Head of Research

Risk Management Expert

12++ YearsCFA-aligned expertiseRisk Management expertise

Sophie Schneider is a recognized expert in risk management and financial market regulation. After her Master's in Economics at LMU Munich and positions at BaFin and international consulting firms, she brings unique insights into regulatory requirements and compliance. As Head of Research at BeInOptions, she oversees quality assurance for all content and ensures our analyses meet the highest standards. Her special focus is on risk management, tax optimization, and regulatory compliance. Sophie employs AI-based analytical tools to evaluate market risks and educate investors about potential pitfalls. Her work helps traders make informed decisions while considering all risk factors. "Good trading starts with good risk management. My mission is to empower investors to seize opportunities while intelligently managing their risks."

Expertise:Risk ManagementRegulatory ComplianceTax OptimizationFundamental AnalysisDue Diligence
Verified Expert
View Profile →

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.