Market Overview
The S&P 500 and the Nasdaq Composite fell last Friday(Aug.11) and posted their second straight weekly losses, as hotter-than-expected U.S. producer prices data pushed Treasury yields higher and sank rate-sensitive megacap growth stocks.
The Dow Jones Industrial Average rose 0.3%, the S&P 500 lost 0.11% and the Nasdaq Composite dropped 0.56%.
Regarding the options market, a total volume of 40,026,634 contracts was traded, down 7.6% from the previous trading day.
Top 10 Option Volumes
Top 10: SPDR S&P 500 ETF Trust, Invesco QQQ Trust, Tesla Motors, NVIDIA Corp,Apple, AMC Entertainment, Advanced Micro Devices, iShares Russell 2000 ETF, Amazon.com, Cboe Volatility Index
Options related to equity index ETFs are popular with investors, with 8.70 million SPDR S&P 500 ETF Trust and 3.88 million Invesco QQQ Trust options contracts trading last Friday(Aug. 11).
AMC Entertainment soared 5.62% but crashed 25.29% in extended trading last Friday. A judge approved its plan to complete a set of moves that would allow the movie-theater chain to issue more common shares and raise capital.
There were 765.5K AMC Entertainment option contracts traded last Friday, doubling from the previous trading day. Put options account for 52% of overall option trades. Particularly high volume was seen for the $6 strike call option expiring August 18, with 42,320 contracts trading. $AMC 20230818 6.0 CALL$
Unusual Options Activity
Occidental rose 3.31% last Friday, the International Energy Agency said crude oil supplies would tighten further into the fall as Saudi Arabia and Russia continue supply cuts.
There were 150.6K Occidental option contracts traded last Friday, doubling from the previous trading day. Call options account for 73% of overall option trades. Particularly high volume was seen for the $65 strike call option expiring August 18, with 9,052 contracts trading. $OXY 20230818 65.0 CALL$
WeWork surged 10.38% last Friday, as it was the latest focus of speculative bets from retail traders, with shares of the financially struggling firms rising in strong trading volume after hitting record lows this week.
There were 39.69K WeWork option contracts traded last Friday. Call options account for 95% of overall option trades. Particularly high volume was seen for the $0.5 strike call option expiring January 19 in 2024, with 6,479 contracts trading.$WE 20240119 0.5 CALL$
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 the Las Vegas Sands option delta volume, traders bought a net equivalent of 7,025,360 shares of stock. The largest bullish delta came from buying calls.
The largest delta volume came from the 15-Dec-23 50 Call, with traders getting long 3,458,838 deltas on the single option contract.$LVS 20231215 50.0 CALL$
Top 10 bullish stocks: Las Vegas Sands, Tesla Motors, Ford, NVIDIA Corp, Amazon.com, Kinder Morgan, Micron Technology, Analog Devices, ConocoPhillips, Palo Alto Networks
Top 10 bearish stocks: Bank of America, General Motors, Apple, AT&T Inc, Advanced Micro Devices, Walt Disney, Occidental, Alphabet, The Kraft Heinz Company, PayPal
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