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Opinion: Here’s the outlook for Nvidia’s stock, according to options traders - MarketWatch

1. Nvidia's market cap surpassed $4 trillion, marking a historic high. 2. Current bullish sentiment indicated by low put-call ratios for NVDA. 3. Implied volatility remains low, suggesting investors are complacent. 4. Protective options strategies may be advisable as complacency could lead to corrections. 5. Historical patterns show that optimism often precedes stock price adjustments.

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FAQ

Why Bullish?

Nvidia's all-time high market cap signals strong investor confidence, but might also precede a correction, as seen in past surges like that of 2021.

How important is it?

The discussion around optimism, put-call ratios, and implied volatility directly relates to NVDA's stock movement and investor sentiment, crucial for potential trading strategies.

Why Short Term?

Current high sentiment may drive prices higher temporarily, but historical data suggests an eventual correction as seen in 2024 patterns.

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