NVDA Bear Put Spread — 2026-08-21

NVDA (NVIDIA Corporation - Common Stock) shows bearish unusual options activity: $40200K of buyer-initiated unusual put flow (16% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 16.7x on the 200 put. IV rank is 61 (elevated) — too rich to buy a naked option into, so this is structured as a bear put spread (197.5/195) to cut vega and cost. Buy the $197.5 / sell the $195 put bear put spread expiring 2026-08-21 (25 DTE) for a net debit of $1.17 ($117 per spread). Breakeven at $196.32; net delta 0.05.

Underlying: NVDA @ ~$197.52 | 2026-08-21 (25 DTE) | Net debit (entry): ~$118 per spread. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the net debit ($117 per spread). Max gain is capped at the strike width minus the debit — a defined-risk, defined-reward trade. | IV RISK: IV rank is 61 — elevated IV inflates premiums; a vol crush could erode value even if direction is correct (the short leg offsets some of this vega). | TIMING: 25 DTE — unusual flow is a near-term signal; act promptly or the setup may stale. Close or take profit before expiration week to avoid gamma risk. | SECTOR: NVDA is in Technology — avoid concentration with other open Technology positions. | EXECUTION: Use limit orders at mid or slightly worse on the spread (don't leg in). Verify the bid-ask before sending; do not chase with market orders. | EVENTS: Check for upcoming earnings, FDA decisions, or macro prints within the trade window that could cause outsized gap risk.