Market Overview
U.S. stocks lost ground at the start of a holiday-shortened week on Monday(Mar 25) as investors positioned themselves ahead of inflation data. Regarding the options market, a total volume of 31,435,289 contracts was traded, down 19% from the previous trading day.
Reddit Options Launch Draws Bulls, as Shares Soar
The launch of options on Reddit, opens new tab on Monday drew a flurry of bullish bets that some analysts said helped boost the social media platform's stock after last week's strong market debut.
Some 90,000 Reddit options changed hands, with trades leaning toward bullish bets, analysts said.
"The action is on the call side and collected around the upside," said Ophir Gottlieb, chief executive of Los Angeles-based Capital Market Laboratories. "With the stock trading higher on Day One, this feels like speculation for higher moves."
April call options with strike prices of $50 to $75 were among the most actively traded Reddit contracts. Among puts, contracts guarding against a drop below $25 by mid-April were the most traded.
Source: Tiger Trade App
Source: Tiger Trade App
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, NVDA, AAPL, AMD, IWM, Micron Technology, Amazon.com, Marathon Digital Holdings Inc
Source: Tiger Trade App
Micron Technology shares rose more than 6% on Monday and hit another all-time high after the Boise, Idaho-based memory maker posted such impressive results and guidance last week.
There are 693.1K Micron option contracts traded on Monday, up 75% from the previous trading day. Call options account for 75% of overall option trades. Particularly high volume was seen for the $120 strike call option expiring March 28, with 59,987 contracts trading. $MU 20240328 120.0 CALL$
Unusual Options Activity
Source: Market Chameleon
DWAC leapt 35% on Monday after shareholders approved a merger with former President Donald Trump’s social media company Trump Media & Technology Group, which owns Truth Social. TRUMP MEDIA & TECHNOLOGY GROUP CORP jumps 18% in premarket trading as it begins to trade Tuesday on Nasdaq.
While DWAC soared to $49.95, traders snapped up more than 15,000 of the $2.50 puts expiring April 19 — equivalent to 1.5 million shares, if the stock were to plunge 95% by then. $DWAC 20240419 2.5 PUT$
TOP Bullish & Bearish Single Stocks
This report shows stocks with the highest volume of bullish and bearish activity by option delta volume, which converts option volume to an equivalent stock volume (bought or sold).
If we take the total positive option delta volume and subtract the total negative option delta volume, we will get the net imbalance. If the net imbalance is positive, there is more bullish pressure. If the net is negative, there is more bearish pressure.
Based on option delta volume, traders bought a net equivalent of 2,241,456 shares of APA stock. The largest bullish delta came from buying calls. The largest delta volume came from the 28-Mar-24 32 Call, with traders getting long 2,404,123 deltas on the single option contract.$APA 20240328 32.0 CALL$
Top 10 bullish stocks: APA, MU, CCL, NVDA, SMCI, MDT, WBD, LUV, MRK, MTCH
Top 10 bearish stocks: AAPL, C, TSLA, MSFT, GM, AAL, WMT, OXY, WFC, GE
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club
Comments