Nvidia options traders reposition for recovery after Jensen Huang’s exit announcement

Options traders moved to lock in profits on bearish bets against Nvidia and positioned for a longer-term recovery in the chipmaker’s shares on Thursday, even as the sudden leadership turmoil triggered a sharp rise in volatility, Reuters reported.

Nvidia CEO Jensen Huang’s announcement that he was stepping down has raised questions about the future direction of the artificial intelligence chipmaker, which he transformed into one of the world’s most valuable companies. Chief Financial Officer Colette Kress will take over as interim CEO while the company searches for a permanent successor.