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A trader who accurately shorted Nvidia in the options market made a profit of more than $6.5 million in one day.

Early Tuesday, 60,000 contracts of the $119/$115 put spread were bought for a total cost of about $1.23 million. This option is equivalent to buying a $119 put option and selling a $115 put option with the same expiration date.

That is, the buyer bets that Nvidia's stock price will fall below $119 by Friday, and at the same time reduces the cost by selling options with a lower strike price of $115. This is less risky than buying a pure $119 put option, but it will also limit the maximum profit it can obtain.

To make the above deal valuable when the options expire this Friday, Nvidia's stock price needs to fall nearly 6% from Tuesday's closing price. In just one day, Nvidia, the "center of the US stock universe", really did it, and the deal quickly paid off.

On Wednesday, the Philadelphia Semiconductor Index plunged nearly 7%, and the hottest ETF tracking the index experienced its biggest drop since the outbreak. Nvidia fell 6.6%, the worst among the "Seven Technology Sisters" that fell across the board, and ASML fell nearly 13%, causing a circuit breaker. Nvidia eventually closed down 6.6%, closing at $118.

It is worth mentioning that in the early trading of the U.S. stock market on Wednesday, about 58,000 identical spread contracts were traded at one time, with a price of about $7.83 million. Although it is not certain whether this was done by the same investor, market participants said that the transaction seemed to be closing positions. Therefore, if it was the same trader, the total profit was more than $6.5 million.