Nvidia stock surged over 4% on increased call options trading volume, potential bull-trap.

From Investing.com.: 2024-10-09 02:34:00

Stocks ended the day higher, up by about 1% with Nvidia leading the rally by climbing more than 4%. Over 3 million Nvidia call options were traded, well above the 20-day average. Despite the surge in price, trading volume was relatively average, indicating movement driven by options trading. Call volume for options expiring this week suggests short-term exposure rather than sustained upside. Once call volume fades, the stock may revert to lower levels, potentially impacting the broader index. Strange overnight trading patterns continue with frequent gaps after sharp rallies or sell-offs. Weakness in the USD/CAD correlates with S&P 500 movements recently. Reserve balances not bouncing back to pre-quarter end levels affecting market liquidity.



Read more at Investing.com.: Nvidia: This Technical Breakout Could Turn Out to Be a Bull-Trap