Market Overview
U.S. stocks slumped on Tuesday (Sep. 3), at the start of one of the market's historically worst months, ahead of data likely to influence how much the Federal Reserve will lower interest rates.
Regarding the options market, a total volume of 43,745,093 contracts was traded, up 5% from the previous trading day.
Top 10 Option Volumes
Top 10: NVDA, TSLA, AAPL, AMD, INTC, AMZN, META, PLTR, AVGO, BA
Source: Tiger Trade App
Nvidia shares tumbled 9.5% on Tuesday in the deepest ever single-day decline in market value for a U.S. company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.
Even worse, the U.S. Department of Justice has sent a subpoena to Nvidia as it deepens its probe into the AI heavyweight's antitrust practices, Bloomberg News reported on Tuesday, citing people familiar with the investigation. The shares dropped another 2.4% in extended trading.
There are 5.94 million Nvidia option contracts traded on Tuesday, up 12% from the previous trading day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $110 strike put option expiring September 6, with 164,382 contracts trading. NVDA 20240906 110.0 PUT
Broadcom shares dropped 6.2% on on Tuesday affected by Nvidia. The chipmaker slated to release its fiscal third-quarter earnings report after the closing bell on Thursday. Investors will likely be scrutinizing the company’s artificial intelligence sales growth and full-year outlook, which have benefited in recent quarters from growing demand for its custom AI chips.
There are 245.8K Broadcom option contracts traded on Tuesday, up 29% from the previous trading day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $155 strike call option expiring September 6, with 24,084 contracts trading. AVGO 20240906 155.0 CALL
Unusual Options Activity
Source: Market Chameleon
Falling Nvidia pressure stocks of chipmakers on Tuesday. The PHLX chip index (SOX) plummeted 7.75%, its biggest one-day drop since 2020. Direxion Daily Semiconductors Bull 3x Shares (SOXL), an index that tracks semiconductor stocks, was down 22.48%, its worst day since March 2020.
There are 308.1K SOXL option contracts traded on Tuesday, up 56% from the previous trading day. Call options account for 63% of overall option trades. Particularly high volume was seen for the $35 strike call option expiring September 6, with 10,628 contracts trading. SOXL 20240906 35.0 CALL
Boeing stock plunged 7.3% to its lowest level since 2022 on Tuesday. Wells Fargo analyst Matthew Akers downgraded Boeing stock to the equivalent of Sell from Hold. His price target was reduced to $119 a share from $185.
There are 239.2K Boeing option contracts traded on Tuesday, up 280% from the previous trading day. Call options account for 56% of overall option trades. Particularly high volume was seen for the $160 strike put option expiring September 6, with 10,467 contracts trading. BA 20240906 160.0 PUT
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 option delta volume, traders sold a net equivalent of -3,898,394 shares of Apple stock. The largest bearish delta came from selling calls. The largest delta volume came from the 20-Sep-24 Call, with traders getting short 778,364 deltas on the single option contract.
Top 10 bullish stocks: PDD, NVTS, GM, PLTR, LUMN, NIO, APLD, RILY, URBN, XOM
Source: Market Chameleon
Top 10 bearish stocks: AAPL, NVDA, SIRI, TSLA, AFRM, GOOGL, BA, COIN, VZ; AMZN
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club
Comments