A broad sell-off sent U.S. stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve could relent and scale back its policy tightening in the coming months.
The Dow Jones Industrial Average fell 1,276.37 points, or 3.94%, to 31,104.97, the S&P 500 lost 177.72 points, or 4.32%, to 3,932.69 and the Nasdaq Composite dropped 632.84 points, or 5.16%, to 11,633.57.
Options Broad View
A total volume of 39,422,317 contracts was traded on Tuesday, up 11.66% from the previous day. Call options account for 48% of total options trades.
There are 8.70 million SPDR S&P 500 ETF Trust options traded on Tuesday. Call options account for 36% in overall option trades. Particularly high volume was seen for the $390 strike call option expiring September 16, with 150,664 contracts trading on Tuesday.
Top 10 Option Volumes
Top 10:SPDR S&P 500 ETF Trust, Invesco QQQ Trust, Tesla Motors, Apple, iShares Russell 2000 ETF, Amazon.com, Meta Platforms, Inc., NVIDIA Corp, Cboe Volatility Index, AMD
Options related to equity index ETFs are still top choices for investors, with 3.22 million Invesco QQQ Trust options contracts trading on Tuesday. Call options account for 36% in overall option trades. Total trading volume for SPDR S&P 500 ETF Trust and Invesco QQQ Trust increase 6.36% and 15%, respectively, from the previous day.
Nasdaq100 Bear 3X ETF surged 16.5% while Nasdaq100 Bull 3X ETF crashed 16.46% following higher-than-expected CPI data. CPIincreased 0.1% for the month and 8.3% over the past year even as gas prices helped give consumers a little bit of a break. Excluding volatile food and energy costs, CPI rose 0.6% from July and 6.3% from the same month in 2021.
There are 266.8K Nasdaq100 Bear 3X ETF option contracts traded on Tuesday. Call options account for 83% of overall option trades. Particularly high volume was seen for the $45 strike call option expiring Sep 16, with 14,306 contracts trading on Tuesday.
Unusual Options Activity
Alphabet slipped 5.9% and was one of the biggest losers among mega-cap growth stocks. It is reportedly facing damages claims of up to EUR25 billion ($25.4 billion) in two upcoming court cases in the U.K and the Netherlands over its digital advertising practices.
Alphabet's option trading has also seen relatively large changes. There are 362,452 option contracts traded on Tuesday. Call options account for 60% of overall option trades. Particularly high volume was seen for the $105 strike put option expiring September 16, with 14,615 contracts trading on Tuesday.
Peloton Interactive, Inc. slid 10.32% on Tuesday. The company accepted the resignation of co-founder and former CEO John Foley from his position as executive chairman, effective immediately, on Monday evening. His departure was joined by the announcement of a planned exit of fellow co-founder and Chief Legal Officer Hisao Kushi, effective October 3.
There are 108,501 option contracts traded on Tuesday. Call options account for 53% of overall option trades. Particularly high volume was seen for the $10.5 strike call option expiring September 16, with 11,910 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: Gilead Sciences, Elanco Animal Health Inc, iShares MSCI Canada ETF, Invesco QQQ Trust, Nasdaq100 Bear 3X ETF, Deutsche Bank AG, Bausch Health Companies Inc, iShares MSCI Germany ETF, Annaly Capital Management, NortonLifeLock Inc.
Top 10 bearish stocks:Apple, iShares Russell 2000 ETF, Tesla Motors, Barclays PLC, Bank of America, SoFi Technologies Inc., Meta Platforms, Inc., Uber, SPDR Gold Shares
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