The S&P 500 and the Nasdaq closed lower on Tuesday (May 12), easing from record highs as hotter-than-expected inflation data and an increasingly tenuous U.S.-Iran ceasefire prompted investors to take money off the table near the end of a robust first-quarter earnings season.
Weakness in tech shares dragged the Nasdaq down the most, while healthcare stocks, buoyed by a jump in Humana, helped keep the Dow in positive territory.
Regarding the options market, a total volume of 61,412,266 contracts was traded on Tuesday.
Top 10 Option Volumes
Top 10: NVIDIA, Tesla Motors, Micron Technology, Intel, Apple, Cboe Volatility Index, Amazon.com, Nokia Oyj, Netflix, Microsoft
Micron Technology stock fell 4% on Tuesday.
A total number of 1.02 million options related to Micron Technology were traded on Tuesday, of which call options accounted for 60%. Particularly high volume was seen for the $800 strike call option expiring May 15, with 39,120 contracts trading.
Netflix stock rallied nearly 3% after the company launched a sweeping new initiative called "The Netflix Effect," with co-CEO Ted Sarandos announcing that the streaming giant has invested more than $135 billion in films and television series over the past decade, with those productions contributing more than $325 billion to the global economy and supporting over 425,000 jobs worldwide.
A total number of 494.25K options related to Netflix were traded on Tuesday, of which call options accounted for 72%. Particularly high volume was seen for the $90 strike call option expiring Mar 15, with 35,372 contracts trading. For example, the $90 strike call option expiring this Friday soared 147%.
Unusual Options Activity
Telehealth company Hims & Hers Health Inc.’ stock plummeted 14% on Tuesday after posting a first-quarter loss and weak earnings guidance for the year ahead.
A total number of 327.02K options related to Hims & Hers Health Inc. were traded on Tuesday, of which call options accounted for 71%. Particularly high volume was seen for the $30 strike call option expiring May 15, with 29,373 contracts trading.
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: Alphabet, Alphabet, Microchip Technology, Advanced Micro Devices, TeraWulf Inc., Energy Transfer LP, Oracle, Palantir Technologies Inc., Qualcomm, Corning
Top 10 bearish stocks: Plains All American Pipeline LP, Intel, NVIDIA, Plains Group Holdings LP, Microsoft, Beyond Meat, Inc., Amazon.com, Taiwan Semiconductor Manufacturing, Kalvista Pharmaceuticals Inc, Opendoor Technologies Inc
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