Wall Street extended its winning streak on Monday, rallying to a sharply higher close as investors awaited crucial inflation data that could provide clues about the duration and severity of the Federal Reserve's tightening policy.
The Dow Jones Industrial Average rose 229.63 points, or 0.71%, to 32,381.34, the S&P 500 gained 43.05 points, or 1.06%, to 4,110.41 and the Nasdaq Composite added 154.10 points, or 1.27%, to 12,266.41.
Options Broad View
A total volume of 35,306,086 contracts was traded on Monday. Call options account for 56% of total options trades.
There are 8.18 million SPDR S&P 500 ETF Trust options traded on Monday. Call options account for 43% of overall option trades. Particularly high volume was seen for the $410 strike call option expiring September 14, with 107,228 contracts trading on Monday.
Top 10 Option Volumes
Top 10: SPDR S&P 500 ETF Trust, Invesco QQQ Trust, Apple, Tesla Motors,iShares Russell 2000 ETF, Amazon.com, $iShares iBoxx High Yield Corporate Bond ETF, iShares Silver Trust, NIO Inc., NVIDIA Corp
Options related to equity index ETFs are still top choices for investors, with2.80 million Invest QQQ Trust ETF options contracts trading on Monday. Call options account for 45% of overall option trades.
Apple rose 3.85% on Monday as Wall Street analysts cited strong demand for the company’s new product releases. According to JPMorgan Chase analyst Samik Chatterjee, iPhone demand indications are strong following the launch, and while similar to last year the mix continues to be more favorable towards Pro models, lead times for the two Pro models are already more extended relative to last year.
There are 1.81M Apple option contracts traded on Monday. Call options account for 61% of overall option trades. Particularly high volume was seen for the $165 strike call option expiring Sep16, with 159,404 contracts trading on Monday.
Unusual Options Activity
NIO Inc. surged 13.52% following Deutsche Bank’s reiteration of a “buy” rating. Deutsche analyst Edison Yu reiterated his price target of $39 and raised its full-year delivery forecast by 5,000 vehicles to 140,000. This implies around 57,000 deliveries during Q4.
NIO's options trading has also seen relatively large changes. There are 447,262 option contracts traded on Monday. Call options account for 62% of overall option trades. Particularly high volume was seen for the $21 strike call option expiring September 16, with 28,287 contracts trading on Monday.
Oracle rose 1.54% in the normal trading and continued to rise 1.39% in the extended trading; it reported its Q1 results, with EPS of $1.03 missing the consensus estimate of $1.08, while revenue of $11.4 billion (up 18% year-over-year) coming in better than the consensus estimate of $11.33 billion.
There are 178,796 option contracts traded on Monday. Call options account for 57% of overall option trades. Particularly high volume was seen for the $80 strike call option expiring September 16, with 13,863 contracts trading on Monday.
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.
Top 10 bullish stocks: Apple, Clovis Oncology, Altice USA Inc., Occidental, Tesla Motors, Nasdaq100 Bull 3X ETF, Faraday Future Intelligent Electric Inc., Vanguard FTSE Europe ETF, Manchester United PLC, Elanco Animal Health Inc
Top 10 bearish stocks: iShares Silver Trust, SPDR S&P 500 ETF Trust, ARK Innovation ETF, U.S. Global Jets ETF, Vale SA, $iShares iBoxx High Yield Corporate Bond ETF, Nikola Corporation, Ford, American Airlines, Meta Platforms, Inc.
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