Market Overview
The Nasdaq and the S&P 500 ended lower on Friday(April 19) as Netflix shares weighed, but American Express kept the Dow afloat after quarterly earnings from both companies, while growing pessimism that the Federal Reserve would cut interest rates soon also dented sentiment.
Regarding the options market, a total volume of 50,970,177 contracts was traded, up 25% from the previous trading day.
Top 10 Option Volumes
Top 10: NVDA, TSLA, AAPL, AMD, AMZN, META, Netflix , SUPER MICRO COMPUTER INC , ARM Holdings Ltd , MSFT
Source: Tiger Trade
Nvidia’s share price plunged by 10 per cent on Friday, helping to seal the worst run for US stock markets since October 2022, as investors shunned risky assets ahead of a flurry of Big Tech earnings next week.
There are 3387.75K Nvidia option contracts traded on Friday, up 134% from the previous trading day. Call options account for 54% of overall option trades.
Unusual Options Activity
Source: Market Chameleon
Netflix reported better-than-expected earnings and smashed subscriber growth estimates in the first quarter but the streaming giant issued second-quarter revenue guidance of about $9.49 billion, below analysts’ forecasts of $9.53 billion. Netflix also said it planned to stop providing quarterly membership data and average revenue generated per member. The metric always has been the most closely watched for Netflix investors. The stock dropped 9.1%.
There are 505.33K Netflix option contracts traded on Friday, up 92% from the previous trading day. Call options account for 52% of overall option trades.
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 -2,917,556 shares of stock. The largest bearish delta came from selling calls. The largest delta volume came from the 19-Apr-24 820 Put, with traders getting long 1,051,522 deltas on the single option contract.
Top 10 bullish stocks: AAPL, MU, GOOG, NCLH, UBER, DD, WMT, SBUX, BX, JBL
Top 10 bearish stocks: NVDA, TSLA, C, SMCI, AAL, INTC, GM, F, KO
Source: Market Chameleon
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