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Another leg higher for Nvidia?

David Russell (david.russell@optionmonster.com)

Nvidia ripped late in the winter, and now the bulls are back.

optionMONSTER's Heat Seeker monitoring program detected the purchase of almost 12,000 January 21 calls, dwarfing previous open interest of just 98 contracts. The largest blocks priced for $0.91.

These long calls lock in the price where investors can buy shares in the provider of graphic chips, ensuring that they won't miss a rally. The contracts are also much cheaper than the shares, which can also result in significant leverage if the stock moves higher. (See our Education section)

NVDA rose 0.11 percent to $19.05 yesterday and has traded in a tight range since February, when it surged from $15.50 to $19. The shares have been making incrementally higher lows during that time, which could lead some chart watchers to think that the stock is getting ready for a breakout.

Total option volume was 5 times greater than average in the session, with overall calls outnumbering puts by more than 20 to 1.

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