Nvidia’s Latest Unwind Has Boiling Option Trades Fading

The Nvidia headquarters in Santa Clara.Photographer: Philip Pacheco/Bloomberg
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Nvidia Corp.’s correction has volumes in shares and options turning upside down.

The high options activity was often cited as one of the main reasons for the chipmaker’s relentless climb: Market makers in the contracts had to constantly hedge their positions by trading the stock as it moved higher in what is called a gamma squeeze.