Nvidia bets dominate US options market as AI fervor grows

FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

NEW YORK (Reuters) - Investors' fervor for all things AI-related is leaving its mark on the U.S. options market, as traders pile in to derivatives bets to gain exposure to the red-hot investing theme.

Options on artificial-intelligence darling Nvidia accounted for 25 cents of every dollar of premium - the price of contracts - traded in U.S. single-stock options over the past month, nearly $3 billion in options premium traded in the chipmaker's options every day on average, a Reuters analysis of Trade Alert data showed. During several recent sessions, Nvidia surpassed Tesla as the option market’s most heavily traded name for the day.