Nvidia and Lucid Motors Stocks Face Challenges as Bullish Bets Reach Crowded Levels

Wall Street is abuzz with comparisons between Nvidia and dot-com-era Cisco. Lucid Motors stock drops as losses mount for the EV startup. Bullish bets on Nvidia and other ‘Magnificent Seven’ members are nearing their most crowded levels, raising concerns among options-market experts about potential problems for the broader market. Market-data firm Spotgamma indicates that risky bullish options tied to the ‘Magnificent Seven’ and other market-leading technology stocks are approaching their most crowded levels in the past year. Derivatives-market experts warn of a potential pullback in the broader equities market, particularly for Big Tech stocks. Nvidia has been the best-performing stock in the S&P 500 so far in 2024, with a 46.7% increase this year following a 238% advance in 2023.