Market Overview
Wall Street's main indexes ended lower on Monday, as investors digested comments from U.S. Federal Reserve officials about plans for interest rate hikes and looked for next catalysts after last week's big stock market rally.
The Dow Jones Industrial Average fell 0.63%, the S&P 500 lost 0.89% and the Nasdaq Composite dropped 1.12%.
Regarding the options market, a total volume of 37,749,462 contracts was traded on Monday, down 30.3% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, VIX, AMZN, AAPL, IWM, AMD, META, HYG
Options related to equity index ETFs are top choices for investors, with 7.77 million SPY and 2.58 million Invesco QQQ Trust options contracts trading on Monday.
Total trading volume for SPY and Invesco QQQ Trust slid 11.5% and 38.37%, respectively, from the previous day. 56% of SPY trades bet on bearish options.
Pfizer gained 3.45% on Monday after an expert panel of the European Medicines Agency (EMA) recommended marketing authorization for its Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine to use as a booster in children aged 5 – 11 years.
There were 234,700 Pfizer options trading on Monday. Call options account for 80% of overall option trades. Particularly high volume was seen for the $51 strike call option expiring November 18th, with 30,523 contracts trading on Monday.
Unusual Options Activity
Sea Ltd crashed 7.34% on Monday as it has cut about 7,000 jobs, or roughly 10% of its workforce in the past six months to stem ballooning losses and win back investors.
Another thing to mention is that it is scheduled to announce Q3 earnings results before the market opens on Tuesday, November 15th.
There were 79,080 Sea Ltd options trading on Monday. Call options account for 60% of overall option trades. Particularly high volume was seen for the $48 strike call option expiring November 18th, with 2,891 contracts trading on Monday.
Digital World Acquisition Corp surged 10.92% on Monday after Donald Trumpwroteon Truth Social "Hopefully, tomorrow will turn out to be one of the most important days in the history of our country", which suggested that he could announce a presidential run for the upcoming 2024 election as soon as Tuesday.
There were 81,490 Digital World Acquisition Corp options trading on Monday. Call options account for 76% of overall option trades. Particularly high volume was seen for the $30 strike call option expiring November 18th, with 12,603 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: SIRI, NKLA, EEM, HYG, LUMN, SPY, AMC, XELA, U, ASHR
Top 10 bearish stocks: TSLA, AMZN, QQQ, SLV, AMD, XLP, BITO, DIS, AAPL, FXI
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