NVDA Broken-Wing Bear Call — 2026-10-26

NVDA (NVIDIA Corporation - Common Stock): options flow was balanced/mixed, IV rank 9 (low). Our gamma model reads NVDA in a NEGATIVE-gamma regime (net GEX -8.9M, flip —) — dealers are short gamma and amplify moves, so this is defined-risk only and leans with the flow. Structured as a Broken-Wing Bear Call (sell $230C / buy $240C) expiring 2026-10-26 (14 DTE) — negative-gamma (trend/gap risk) → defined-risk broken-wing leaning with flow. Net credit $255, max loss $745 (defined risk). Breakevens $232.55.

Underlying: NVDA @ ~$226.23 | 2026-10-26 (14 DTE) | Net credit (entry): ~$255 per spread. Use limit orders at the mid or slightly better.

ENTRY: Put on the broken-wing call spread: sell the $230 call, buy the further-OTM $240 call with a WIDER gap on the far wing, expiring 2026-10-26 (14 DTE), as one order at a LIMIT of the mid or better — target net credit $255. IV rank 9 is low — premium is thin, so keep size small and lean on a defined-risk structure. The skew removes downside risk while collecting a credit; the upside gap is the residual max loss ($745). | TAKE PROFIT: Buy it back to LOCK IN gains at ~50% of the $255 credit. Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near NVDA's short strike(s) — currently 14 DTE, so plan the exit 0 day(s) out. Below $230 the whole credit is yours — take profits, don't carry the tail. Breakeven $232.55. | IF TESTED: The risk is a sharp rally into the wide wing. When NVDA tests the $230 short call (delta ~0.30) or loss ≈$510, roll the structure UP and OUT ~7–14 days for a credit, or buy an extra long call to square the wing into a symmetric (fully defined) spread. Treat a close above the $230 call wall as the hard trigger to act (the resistance magnet has broken). dealer gamma is NEGATIVE (vol-amplifying) — moves accelerate here, so defend one trigger EARLIER than usual and don't wait for the strike to go in-the-money; put wall (support) at $225; call wall (resistance) at $230. If price reaches the $240 wing, you're at max loss ($745) — take it. | MAXIMIZE: Holding below $230? Let theta collect the full credit. Once most is banked, roll down toward the money next cycle for a richer credit, or add a put spread to convert into an iron condor if flow turns two-sided.