Market Overview
U.S. stock indexes closed sharply lower on Thursday, as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession.
The Dow Jones Industrial Average fell 2.25%, the S&P 500 lost 2.49%, and the Nasdaq Composite dropped 3.23%.
Regarding the options market, a total volume of 41,122,688 contracts was traded on Thursday, up 2.05% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, AAPL, IWM, AMZN, VIX, TQQQ, NVDA, NFLX
There are 9.65 million SPDR S&P 500 ETF Trust and 3.01 million Invesco QQQ Trust options contracts trading on Thursday. SPDR S&P 500 ETF Trust’s trading volumes rose 14.34% while Invesco QQQ Trust’s volume slid 2.27% from the previous day. 57% of SPDR S&P 500 ETF Trust trades bet on bearish options.
Netflix slid 8.63% on Thursday as its new ad-tier service launched in early November is falling short on projected subscriptions. It is only seeing about 80% of its expected audience in certain cases, although the numbers vary by the advertiser.
There were 558,900 Netflix options trading on Thursday, and its trading volume doubled from the previous day. Put options account for 53% of overall option trades. Particularly high volume was seen for the $290 strike put option expiring December 16th, with 33,500 contracts trading on Thursday.
Unusual Options Activity
Roblox Corporation crashed 15.76% on Thursday as it reported fewer estimated bookings in November than in the prior month and a slower pace of active users.
Daily active users increased 15% year-over-year to 56.7 million last month, while estimated bookings increased 5% to 7% to between $222 million and $225 million, the company said. Estimated bookings in October were in a range of $231 million to $235 million while daily active users averaged 58.2 million.
There were 172,900 Roblox Corporation options trading on Thursday. Put options account for 58% of overall option trades. Particularly high volume was seen for the $30 strike put option expiring December 16th, with 28,529 contracts trading on Thursday.
Mullen Automotive surged 19.33% on Thursday as it announced a purchase order from Randy Marion Automotive Group for 6,000 cargo vans. This deal is worth roughly $200 million.
There were 129,900 Mullen Automotive options trading on Thursday. Call options account for 97% of overall option trades. Particularly high volume was seen for the $0.5 strike call option expiring December 16th, with 20,319 contracts trading on Thursday.
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: IWM, MULN, T, UUP, EWC, AMD, F, SQQQ, CORZ, AMC
Top 10 bearish stocks: FXI, TSLA, XLF, RBLX, AAPL, NVAX, TQQQ, EWZ, RIG, EEM
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