Option Movers | Tesla's Bullish Sentiment Heats Up as Price Cuts Spurs Demand

Market Overview

The Dow stumbled more than 1% on Tuesday (Jan.17) as weak earnings from Goldman Sachs dragged the index lower, but a jump in Tesla shares helped keep the benchmark S&P 500 and Nasdaq near the unchanged mark.

Regarding the options market, a total volume of 36,986,464 contracts was traded, of which call options account for 54%.

Tesla shows the highest volume of bullish activity by option delta volume. The electric-vehicle maker's January retail sales surged in China following recent price cuts on its top-selling models.

Top 10 Option Volumes

Top 10: SPY, TSLA, QQQ, AAPL, AMZN, VIX, BBBY, IWM, AMC, NVDA

Options related to equity index ETFs are still popular choices for investors, with 6.85 million SPDR S&P500 ETF Trust and 2.15 million Invest QQQ Trust ETF options contracts trading on Tuesday.

A 7.43% jump in Tesla Inc helped keep the S&P 500 and Nasdaq afloat. The electric-vehicle maker's January retail sales surged in China following recent price cuts on its top-selling models, data from China Merchants Bank International showed.

There were 2.76 million Tesla options trading on Tuesday, down 31% from the previous tradng day. Call options account for 55% of overall options trading volumes. A particularly high volume was seen for the $130 strike call option expiring January 20, with 193,508 contracts trading on Tuesday.

Source: Market Chameleon

Goldman Sachs slumped 6.44% after the bank reported a bigger-than-expected drop in quarterly profit. The decline in Goldman shares, the second-most expensive of the Dow Industrials, pulled the price-weighted index lower as the biggest drag.

Morgan Stanley climbed 5.91% as it beat analysts' estimates for fourth-quarter profit as its trading business got a boost from market volatility. Earnings from Goldman Sachs Morgan Stanley close out what was a mixed bag for big banks, many of which have stashed rainy-day funds to gird against a potential recession.

Unusual Options Activity

Source: Market Chameleon

AMC Entertainment stock surged nearly 20% to $6.07 on Wednesday following an encouraging tweet from CEO Adam Aron. He expects Avatar: The Way of Water sales to reach $600 million domestically this week.

According to Box Office Mojo, Avatar: The Way of Water currently has a lifetime gross value of $1.903 billion, putting it at number seven on the Top Lifetime Grosses list. Of the $1.903 billion, $572.4 million can be attributed to the domestic box office while $1.33 billion is attributed to the international box office.

Source: Market Chameleon

There were 680.3K AMC options trading on Tuesday. Call options account for 53% of overall option trades. A particularly high volume was seen for the $6 strike call option expiring January 20, with 51,814 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: TSLA, BBBY, AVYA, F, RXT, ITUB, GME, VXX, INTC, AAPL

Top 10 bearish stocks: BAC, PLTR, GRAB, RIG, CVNA, FTCH, META, CHPT, PFE, ET

Source: Market ChameleonIf you are interested in options and you want to:

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