CNBC analysis indicates that NVIDIA's option prices are unusually cheap, with implied volatility near a one-year low, ahead of two potential catalysts this month. This suggests the market does not anticipate significant volatility in the coming weeks but offers a discounted buying opportunity for option traders expecting a large price movement.

The potential catalysts include: NVIDIA CEO Jensen Huang is expected to attend a dinner meeting on Thursday in Washington between Chinese President Xi Jinping and US President Donald Trump, where AI is anticipated to be a major topic of discussion; and next week, Micron will release its fourth-quarter earnings report, which is seen as an important barometer for AI memory demand and could have ripple effects on NVIDIA.

One trader is betting on significant NVIDIA stock volatility by October 16 through buying a 210/220 put spread and a 235/245 call spread (a reverse iron butterfly strategy) expiring on October 16, with a total cost of approximately $4.86. This strategy aims to profit from a large move in the stock price in either direction, with breakeven points at $215.14 and $239.86, meaning NVIDIA's stock price needs to move up or down by about 5% to 6% from its current level to be profitable.