The Biden administration is considering restricting AI chip sales to China
Nvidia Corp (NASDAQ:NVDA) is down 2.1% to trade at $410.08 at last check, after the Wall Street Journal reported the Biden administration is looking into restricting sales of artificial intelligence (AI) chips to China.
The equity is pivoting lower from its June 20, record high of $439.90, but long-term support from its 40-day moving average looks poised to contain today's pullback. Nvidia stock is today looking to mark its fifth loss in six sessions, but still boast an impressive 179.8% year-to-date lead.
Short-terms options traders have been bullish lately. This is per NVDA's Schaeffer's put/call open interest ratio (SOIR), which stands in the 10th percentile of readings from the past year.
Now looks like a great opportunity to bet on the equity's next moves with options. In fact, NVDA sports a Schaeffer's Volatility Index (SVI) of 40% that sits at the low 14th percentile of readings from the past 12 months, meaning premiums are affordably priced at this time.