Nvidia options are doing something unusual ahead of two catalysts. Here's how one trader is playing it

A curious dynamic is happening in shares of Nvidia ahead of two potential catalysts this month, and it's presenting an unique opportunity for options traders. As shares of the AI giant have surged, the stock's forward multiple, a measure of how expensive it is relative to the market, has fallen as the chip maker continues to rake in money. Also falling? The price of Nvidia options. Nvidia shares have rallied 24% in 2026, rising five straight sessions with the stock sitting just 3.5% below its all-time closing high of $235.74 back in May. However, several potential catalysts in the days ahead may reverse or accelerate Nvidia's trajectory from here. According to CNBC, Nvidia CEO Jensen Huang is expected to attend a state dinner for Chinese President Xi Jinping when he travels to Washington to meet with President Trump this Thursday. AI is expected to be a main topic of discussion when Xi meets with Trump. Then September 30, the following week, Micron is expected to report fiscal Q4 earnings, a barometer for AI memory demand that may have ripple effects on Nvidia.Stock Chart IconStock chart iconNvidia, YTDDespite these potential catalysts and Monday's volatility among prominent chip n...