🤑TRADER MAKES $1.2 MILLION on Options Trading Navitas and Nvidia Partnership BEFORE THE NEWS!!! — Transcript

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1. 0:04This week, Na'vi Semiconductor just
2. 0:06landed a huge deal with Nvidia to supply
3. 0:09the power tech behind their nextg AI
4. 0:11data centers. And the market reacted
5. 0:14instantly, driving NVTs up over 140% in
6. 0:18after hours trading. By market open the
7. 0:21next day, NVTS was up over 180% from the
8. 0:26prior market close. Now, with news like
9. 0:28that, that makes a lot of sense. But
10. 0:30here's the kicker. Before the news was
11. 0:32public, we saw a major spike in options
12. 0:35activity on
13. 0:37NVTS. Someone made a bold move on
14. 0:39relatively cheap contracts, loading up
15. 0:42on calls days in advance. Coincidence?
16. 0:45Maybe, but in this video, we're digging
17. 0:47into the unusual options flow that
18. 0:49somewhat suggests someone may have had
19. 0:52knowledge about this collaboration well
20. 0:54ahead of time. On Friday, May 16th, an
21. 0:57unusual options trade appeared in
22. 0:59Na'vias Semiconductor, ticker
23. 1:01[Music]
24. 1:02NVTS. A trader bought 5,000 contracts of
25. 1:06the $4 call expiring January 16th,
26. 1:102026. All contracts filled at the ask
27. 1:13price of 20 cents per contract. And with
28. 1:16only 1,200 open interest beforehand,
29. 1:20this was clearly a new position.
30. 1:23This tallied up to a total of
31. 1:25$100,000 in premium transacted to open
32. 1:28this position. Now, on a relatively
33. 1:31quiet name like NVTS, this was a large
34. 1:34aggressive order that immediately caught
35. 1:36my attention. It triggered my interval
36. 1:38flow filter, and I shared it on Twitter,
37. 1:41noting how unusual it was compared to
38. 1:43historical activity.
39. 1:45Now, as you can see here in the
40. 1:47historical flow data for NVTS, that
41. 1:505,000 contracts was over 10 times the
42. 1:54average 3-day call volume on NVTS, which
43. 1:57sat just above 500 at the time these
44. 2:00orders filled. There was no public news
45. 2:02at the time, no other unusual volume
46. 2:04spikes or apparent catalysts, just a
47. 2:06significant long-dated bet well out of
48. 2:09the money. Then on May 21st, Navitas
49. 2:12announced that partnership with Nvidia,
50. 2:14teaming up to develop high voltage DC
51. 2:17power delivery systems for AI data
52. 2:20centers. This is a meaningful
53. 2:21partnership that changes the outlook for
54. 2:23Na'vias, putting them at the forefront
55. 2:25of AI infrastructure components for a
56. 2:28large company like Nvidia. Now, as I
57. 2:30mentioned, the market responded
58. 2:32strongly. NVTS jumped from a close on
59. 2:36Friday of 208 to over $55 in pre-market
60. 2:40trading the following day. That was a
61. 2:42gain of more than 140%. This moved those
62. 2:45$4 calls from being far out of the money
63. 2:48to deep in the money practically
64. 2:50overnight. And the option prices
65. 2:52themselves reflected that shift. Those
66. 2:55contracts originally purchased for 20
67. 2:57cents each surged to a high of 265, an
68. 3:01astonishing
69. 3:031,225% gain, turning that $100,000 in
70. 3:07premium into over $1.3
71. 3:10million. Now, while we can't say with
72. 3:12certainty what motivated this trade, it
73. 3:15definitely seems like someone had strong
74. 3:17confidence that a major development was
75. 3:19coming, at least enough confidence to
76. 3:21toss 100 G's at it. If you caught this
77. 3:24trade as it happened, you had an early
78. 3:25look at what turned out to be one of the
79. 3:27biggest moves of the week. These
80. 3:30situations highlight while unusual
81. 3:31options flow deserves close attention.
82. 3:33Far more often than not, most flow is
83. 3:36just noise, a constant stream of mostly
84. 3:39meaningless data. But with filtering and
85. 3:42some screen time, it can be crucial to
86. 3:44catching very unusual action that would
87. 3:46otherwise go unnoticed.
88. 3:50Check out the playlists in our YouTube
89. 3:53channel to see how you can use unusual
90. 3:54whales to become a better options
91. 3:57trader.