U.S. stocks rallied on Friday (Aug. 23) as dovish remarks from U.S. Federal Reserve Chair Jerome Powell solidified expectations that the central bank will cut its key policy rate in September.
Regarding the options market, a total volume of 42,789,939 contracts was traded on Friday.
Top 10 Option Volumes
Top 10:NVDA; TSLA; AAPL; AMD; AMZN; META; MARA; MSTR; INTC; MSFT
Source: Tiger Trade App
Nvidia stock rallied 4.55% on Friday. On Wednesday, Nvidia will update shareholders and analysts over its trading performance for its second quarter to the end of July. They will be hoping for another blockbuster set of results, after the firm delivered a strong first quarter.
An analyst consensus compiled by Zacks Investment Research forecast that overall group revenues are likely to be 109% higher for the second quarter as AI-related growth continued to support the business.
A total number of 4.72 million options related to Nvidia was traded, of which 61% were call options. A particularly high trading volume was seen for the $130 strike call option expiring last Friday, with a total number of 397,819 options contracts trading as of Friday.
Source: Market Chameleon
Tesla gained 4.6%, with theprospect of lower interest ratesgiving shares of the electric-vehicle maker a boost. Most cars, including EVs, are purchased with financing and lower rates make vehicles more affordable. Separately, Tesla’s head of finance operations, Sreela Venkataratnam, has left the company, the latest in astring of departuresfrom the company’s top ranks.
A total number of 1.97 million options related to Tesla was traded, of which 57% were call options. A particularly high trading volume was seen for the $220 strike call option expiring last Friday, with a total number of 207,086 options contracts trading as of Friday.
Unusual Options Activity
Source: Market Chameleon
Shares of MicroStrategy surged 12.1% to $150.01 on Friday, amid a confluence of positive factors surrounding the company's substantial Bitcoin holdings and analysts' bullish outlook on the cryptocurrency.
Cantor Fitzgerald initiated coverage on MicroStrategy with an "Overweight" rating and a $194 price target, citing expectations of accelerating demand for Bitcoin. The firm highlighted Bitcoin's finite supply and the potential for institutions to increase their exposure to the digital asset, factors that could drive its price higher in the future.
A total number of 386,850 options related to MicroStrategy was traded, of which 77% were call options. A particularly high trading volume was seen for the $150 strike call option expiring this Friday, with a total number of 44,645 options contracts trading as of Friday.
Source: Market Chameleon
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: GLNG; MSTR; INTC; CAVA; NVDA; UPST; MMM; CLSK; FFIE; TSM
Top 10 bearish stocks: SOFI; META; FUBO; F; AMC; BAC; AMZN; AMD; AAPL; MSFT
Source: Market Chameleon
Based on option delta volume, traders bought a net equivalent of 551,976 shares of Faraday Future stock. The largest bullish delta came from buying calls.
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