American ants 'jump over' due to Nvidia's slump... Purchase worth 100 billion won in 30 minutes

As Nvidia's stock price plummeted due to the shock of former Nvidia CEO Jensen Huang's resignation, American individual investors appeared to have begun buying at low prices in large numbers.

Some investors also bet on rising stock prices through high-risk products such as leveraged exchange-traded funds (ETFs) or short-term call options.

According to the Wall Street Journal (WSJ) on the 12th (local time), individual investors bought $111 million (approximately 148 billion won) worth of Nvidia stocks within 30 minutes after the New York Stock Exchange opened on this day.

This is the largest purchase of Nvidia stock ever as of 30 minutes after opening.

Nvidia started trading at $151.00, a 13.08% drop from the previous day, and fell more than 14% at one point during the day, but the decline was reduced due to low-price buying power, and it ended trading at $166.19, down 4.34%.

The movement of individual investors betting on a rise in Nvidia's stock price appeared even before the resignation announcement.

According to Bandari Research, a market supply and demand analysis company, a total of $42.5 million was inflow from the 9th to the 11th into six leveraged exchange-traded funds (ETFs) that double the daily fluctuation rate of Nvidia's stock price.

On the other hand, there was no net inflow in inverse funds betting on a decline in Nvidia's stock price.

This can be interpreted to mean that there is a strong expectation among individual investors that Nvidia's stock price will rebound.

Short-term options trading, betting on the rise in stock prices of Nvidia's competitors AMD and Broadcom, was also active.

Danny Kersey, head of options at Piper Sandler, said investors are flocking to call options for AMD and Broadcom that expire on the 13th.

A call option is the right to buy a stock at a specific price within a set period of time, allowing you to make a profit if the stock price rises.

In particular, call options with only one day left until expiration can expect large profits in a short period of time, but if the stock price moves differently than expected, you may lose the entire investment.

Kersey called the deal "highly speculative."

On this day, AMD and Broadcom rose 5.86% and 5.54%, respectively, on expectations of a return due to Nvidia's management uncertainty.