Morning Commentary: Nvidia convertibles trading, but ‘too deep in the money’; volume thins

By Stephanie N. Rotondo

Seattle, Nov. 23 – A trader said that Nvidia Corp.’s 1% convertible notes due 2018 were making up the majority of the day’s early trading activity on Wednesday.

“It’s the only thing that’s trading,” he said, seeing about $20 million of the bonds moving by mid-morning.

However, he wasn’t all that excited about those trades, seeing them with a 464 handle.

“It’s like trading stock at this point,” he said. “It’s too deep in the money to be meaningful.”

As for the actual stock (Nasdaq: NVDA), it was up $1.51, or 1.62%, at $95.01.

On Friday, the chipmaker reported record sales for the latest quarter. The company posted total sales of $2 billion, which was up 54% year over year.

Nvidia’s chips have been on fire of late, getting used in new gaming consoles for Nintendo, in Tesla Motors Inc.’s cars and at data centers for big names such as Microsoft and Amazon.

But away from the Nvidia action, there was little going on, according to a trader.

“Tomorrow is Thanksgiving; today is nothing,” he said.

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