Market Overview
U.S. stocks rallied to a convincingly higher close on Tuesday(Feb. 7), but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation. The Dow Jones Industrial Average rose 0.78%, the S&P 500 gained 1.29% and the Nasdaq Composite added 1.9%.
Regarding the options market, a total volume of 42,609,967 contracts was traded, up 14% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, AMZN, AAPL, BBBY, IWM, MSFT, NVDA, GOOGL
Options related to equity index ETFs are still popular with investors, with 10.15 million SPDR S&P500 ETF Trust and 3.23 million Invest QQQ Trust ETF options contracts trading on Tuesday.
Total trading volumes for SPY and QQQ were up about 33% and 28%, respectively, from the previous day. 55% of SPY trades bet on bearish options.
Microsoft unveiled new versions of its Bing internet-search engine and Edge browser powered by the newest technology from ChatGPT maker OpenAI, aiming to gain ground on Google’s web-search juggernaut by being first to offer a more conversational alternative for finding answers on the web and creating content. Microsoft stock jumped 4.2% on Tuesday.
There were 822.8K Microsoft options trading on Tuesday, of which call options accounted for 67%. A particularly high volume was seen for the $270 strike call option expiring February 10, with 63,793 contracts trading on Tuesday.
Unusual Options Activity
Bed Bath & Beyond Inc said on Tuesday it had raised about $225 million in an equity offering and that it was expecting to receive $800 million more in future installments, in a move that could help it stave off bankruptcy. Bed Bath & Beyond shares plummeted 48% on Tuesday.
There were 1,086,696 Bed Bath & Beyond options trading on Tuesday, of which call options accounted for 56%. A particularly high options trading volume was seen for the $4 strike call option expiring February 10, with 72,404 contracts trading on Tuesday.
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: META, FCX, GOOGL, RCL, OXY, C, BA, XOM, SWKS, F
Top 10 bearish stocks: AAPL, LUMN, AMZN, MSFT, AMD, NVDA, CCL, TSLA, GOOG, SBUX
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