Nvidia options cheapen ahead of US-China talks — CNBC
In the United States, options on Nvidia shares have become unusually cheap ahead of two possible catalysts for the company’s stock price: talks between US President Donald Trump and Chinese President Xi Jinping in Washington, and the quarterly report of memory maker Micron. According to CNBC, Nvidia shares have risen 24% since the start of 2026 and were 3.5% below their record closing level of $235.74, set in May.
Possible catalysts
Nvidia CEO Jensen Huang is expected to attend a state dinner for Xi Jinping during his visit to Washington this week. Artificial intelligence is expected by CNBC to be one of the main topics of the Chinese leader’s meeting with Trump.
Another factor for investors may be Micron’s report for its fourth fiscal quarter, scheduled for September 30. It is seen as an indicator of demand for memory for artificial intelligence systems, which could potentially affect Nvidia as well.
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Options strategy
Despite these possible events and volatility among major chipmakers, Nvidia’s implied volatility, determined by current option prices, is near a one-year low. This indicates that the market is not pricing in a significant stock move in the coming weeks, while option prices are relatively low.
The proposed strategy is a reverse iron condor: buying a 210/220 put spread and a 235/245 call spread expiring on October 16. The total cost of the position is about $4.86. The strategy is designed for a significant price move in either direction: the maximum loss is $486 if the shares remain in the $220 to $235 range at expiration, while the maximum profit is $514 if the price closes at $210 or lower, or at $245 or higher.
The breakeven points are $215.14 and $239.86 per share. For this position to be profitable, Nvidia shares must move by approximately 5–6% from the current level by October 16. CNBC also notes that AMD shares rose by more than 9% on Monday, while Intel and Arm posted double-digit percentage gains.
