NVIDIA's (NVDA) Tide Turning?
by Houghton and Atkeson 08/19/08
On July 2, NVIDIA Corp's (NVDA) stock halted at about $18 per share. With the stock stuck, the management preannounced lower earnings and disclosed taking a charge for anticipated customer warranty, repair, return, replacement and other possible costs from its product failures in notebook computers.
Over the next weeks and months, the stock moved to a new 52-week low of $10.55. Since hitting that low, the stock has begun to show some life and is now trading in the mid $13 range.
Today, option investors are buying more than 12,000 NVDA Sept 15 Calls (UVAIC). This follows a similar purchase of 10,000 Sept 15 calls made last week.
There has been a lingering rumor that Intel (INTC) may have an interest in acquiring the company. It appears some option investors are willing to bet this unsubstantiated rumor might prove to be correct.
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