Chipmaker selloff benefits trader who bet against Nvidia, resulting in $6 million gain.

From Nasdaq: 2024-07-17 13:46:33

A trader who bet against Nvidia in the options market made over $6.5 million as shares slumped by buying 60,000 put spread contracts at a cost of $1.23 million. Nvidia dropped by 6.5% early Wednesday amid US-China tensions, leading other tech stocks lower and the S&P 500 down by more than 1%.

In a single block trade on Wednesday, 58,000 of the same spreads were exchanged for $7.83 million, possibly closing the position. If it was the same trader, they could have pocketed more than $6.5 million in total. Market volatility is expected to continue due to geopolitical tensions and cautious investor sentiment.



Read more at Nasdaq: Chipmaker Selloff Rewards Bearish Nvidia Bet with $6 Million Gain