Nvidia Stock Could Just Be Getting Started

Nvidia Corp (NASDAQ:NVDA) stock is up 2.9% to trade at a record high of $216.21 at last glance, heading for a fourth-straight gain. Up 92.7% year-over-year, a historically bullish signal now flashing indicates more tailwinds could be in store. 

The semiconductor stock's peak comes amid historically low implied volatility (IV). According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, there have been 11 instances in the past five years when the equity traded within 2% of its 52-week high, while its Schaeffer’s Volatility Index (SVI) ranked in the 20th percentile of its annual range or lower -- as is the case with its current SVI of 37%, which stands low in the 13th percentile of its annual range. 

NVDA was higher one month later 55% of the time after those signals, averaging a 6.6% gain. This means even more record highs could be in store for the shares going forward.

Options traders seem confident in an extended rally, per White's list of stocks that saw the most options volume over the past 10 days. Within this two-week timeframe, Nvidia stock drew 23,317,743 calls and 10,801,046 puts exchanged, with the weekly 4/24 210-strike call getting the most action.

Bulls are doubling down today, with more than 3 million calls exchanged so far today, which is double the amount typically seen at this point. Most active is the weekly 4/27 212.50-strike call.