Market Overview
The S&P 500 and Nasdaq finished at their highest levels in a month on Friday (Jan. 13), with shares of JPMorgan Chase and other banks rising following their quarterly results, which kicked off the earnings season.
Regarding the options market, a total volume of 44,208,238 contracts was traded, down 6.5% from the previous trading day.
There were 4 million Tesla options trading on Friday, up 38% from the previous trading day. Tesla has slashed prices on its electric vehicles in the United States and Europe, the automaker's website shows, extending a new strategy of aggressive discounting.
Top 10 Option Volumes
Top 10: SPY, TSLA, QQQ, AMZN, BBBY, AAPL, IWM, VIX, NVDA, BAC
Options related to equity index ETFs are top choices for investors, with 7.48 million SPDR S&P500 ETF Trust and 2.55 million Invest QQQ Trust ETF options contracts trading on Friday.
Total trading volume for SPY and QQQ are both down about 23% from the previous day. 58% of SPY trades bet on bearish options.
Tesla stock opend about 5% lower on Friday while repairing some losses and ended down 0.94%. There were 4 million Tesla options trading on Friday, up 38% from the previous tradng day. Call options account for 61% of overall open interest. Particularly high open interest by expiration was seen for the strikes expiring Jan. 20.
Tesla has slashed prices on its electric vehicles in the United States and Europe, the automaker's website shows, extending a new strategy of aggressive discounting after missing Wall Street estimates for deliveries.
Tesla's latest price cuts could help spur demand and indicate the company "is not going to play nice," Wedbush says.
The U.S. price cuts, announced late Thursday in U.S. time on the Model 3 sedan and Model Y crossover SUV, ranged between 6% and 20% compared with prices before the discount. That is before accounting for an up to $7,500 federal tax credit that took effect for many electric vehicle models at the start of January.
In Germany, it cut prices on the Model 3 and the Model Y - its global top-sellers - by between about 1% and almost 17% depending on the configuration. It also cut prices in Austria, Switzerland and France.
Unusual Options Activity
Shares of Bed Bath & Beyond stock ended down over 30% last Friday. It was announced that the retailer is currently in talks with lenders concerning its possible Chapter 11 bankruptcy filing. These talks include the possibility of a horse bid, which would see a lender offer to buy some or all of Bed Bath’s assets in a bankruptcy auction by setting a low-range bid.
There were 1.33 million Bed Bath & Beyond options trading on Friday. Call options account for 56% of overall option trades. A particularly high volume was seen for the $5 strike call option expiring January 20, with 42,915 contracts trading on Friday.
Marathon Digital Holdings Inc surged 9.2% on Friday as FTX recovered more than $5 billion in different assets, not including another $425 million in crypto held by the Securities Commission of the Bahamas.
There were 450,193 Marathon Digital Holdings Inc options trading on Friday. Call options account for 70% of overall option trades. A particularly high volume was seen for the $8 strike call option expiring January 20, with 15,889 contracts trading on Friday.
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, AMZN, BABA, C, SABR, WFC, META, BBIG, MU, MULN
Top 10 bearish stocks: NIO, CVNA, BAC, TLRY, BKKT, NVDA, AMC, SPCE, MARA, FUBO
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