This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Such is NVIDIA's heft these days that even a moderate-sized selloff ends up making records on the stock exchange.
At the time of writing, NVIDIA is down just around 5 percent in late-session trading. However, earlier in the session, the stock was up around 5 percent.
$NVDA, Nvidia has fallen 4% from being up 5% in the day, wiping out more than an entire $SPOT in marketcap during the downturn. pic.twitter.com/D3hk74EUhb
— unusual_whales (@unusual_whales) March 8, 2024
This ~10 percent correction, however, has ended up making records, courtesy of NVIDIA's gargantuan market cap that still resides well north of the $2 trillion level.
Looks like a lot of $NVDA calls are being monetized here. That means delta getting sold. Call skew during the week and drop before the weekend. Meme trading 101 👀 @doc_mcgraw @wolveran1 @Tim10337907 pic.twitter.com/VdRcoCACtI
— Menthor Q (@MenthorQpro) March 8, 2024
Do note that today's price action has not been prompted by any specific news. Instead, this is a classic response to a call-heavy regime. With the end of the week approaching, traders began exercising their in-the-money call options on NVIDIA earlier today. This then prompted option dealers to unwind their hedges by selling the underlying NVIDIA shares, compounding today's selloff.
NVIDIA closed at a market capitalization of $2.317 trillion yesterday. At the time of writing, the stock boasts a market cap of $2.18 trillion. This means that within a span of just a few hours, NVIDIA has lost $137 billion in market cap, or around 84 percent of Uber's entire market capitalization!
As we reported in a previous post, traders spent a whopping $20 billion betting on NVIDIA's options in the last week of February, eclipsing the rest of the "Magnificent 7" grouping of high-flying names by a wide margin. This options-heavy regime, however, is working against the bulls today.
Nonetheless, NVIDIA is likely to remain a momentum front-runner for the time being on the back of aggressive AI-related tailwinds. Consider the fact that the company's data center segment recently reported quarterly revenue of $18.4 billion vs. just around $3.6 billion in the comparable quarter last year. Moreover, the GPU manufacturer now expects to earn $24 billion, give or take 2 percent, in the ongoing quarter.
We noted recently that Nancy Pelosi had earned 10 years' worth of pay in unrealized gains in just 103 days by placing a smart bet on NVIDIA via deep-in-the-money call options. Today's selloff is likely to dampen the career democrat's gargantuan gains on this bet.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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