Option Movers｜Tesla’s Volume Rose 60%; Long GameStop and Pinduoduo Surged 937% and 433% in One Day

Market Overview

U.S. stocks ended with modest gains on Tuesday as investors parsed conflicting remarks from Federal Reserve officials, with upbeat consumer data providing some lift.

The Dow Jones Industrial Average rose 0.24%, the S&P 500 gained 0.10%, and the Nasdaq Composite added 0.29%.

Regarding the options market, a total volume of 33,606,789 contracts was traded, up 18.18% from the previous trading day.

Top 10 Option Volumes

Top 10: SPDR S&P 500 ETF Trust, Invesco QQQ Trust-ETF, Tesla Motors, NVIDIA Corp, iShares Russell 2000 ETF, Cboe Volatility Index, Amazon.com, Apple, Microsoft, iShares Silver Trust

Tesla Motors rose 4.51% on Tuesday as investors braced for the unveiling this week of its much-awaited Cybertruck.

There were 2.24 million Tesla Motors option contracts traded on Tuesday, jumping over 60% from the previous day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $250 strike call option expiring December 1 $TSLA 20231201 250.0 CALL$, with 132,636 contracts trading. Meanwhile, the $257.5 strike call option expiring December 1 $TSLA 20231201 257.5 CALL$ rose 248.72% on Tuesday.

Source: Tiger Trade App

Unusual Options Activity​​

Source: Market Chameleon

Pinduoduo Inc. surged 18.08% on Tuesday as heavy discounting boosted sales across its e-commerce platforms in China and overseas.

There were 217K Pinduoduo Inc. option contracts traded on Tuesday. Call options account for 61% of overall option trades. Particularly high volume was seen for the $140 strike call option expiring December 1 $PDD 20231201 140.0 CALL$, with 11,443 contracts trading. Meanwhile, the $135 strike call option expiring December 1 $PDD 20231201 135.0 CALL$ rose 433% on Tuesday.

GameStop gained 13.27% on Tuesday as investors start to prep for the retailer's earnings report next week.

There were 172K GameStop option contracts traded on Tuesday, surging over 300% from the previous day. Call options account for 84% of overall option trades. Particularly high volume was seen for the $13 strike call option expiring December 1 $GME 20231201 13.0 CALL$, with 13,267 contracts trading. Meanwhile, it surged 937.5% on Tuesday.

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: Goldman Sachs, Home Depot, Citigroup, AT&T Inc, General Motors, Bristol-Myers Squibb, Alphabet, Abbott Laboratories, Hilton, Tesla Motors

Top 10 bearish stocks: Apple, Walt Disney, Ford, Wal-Mart, Boeing, NVIDIA Corp, Warner Bros. Discovery, Cisco, Pfizer, ON Semiconductor

Source: Market Chameleon

Based on option delta volume, traders sold a net equivalent of 1,005,051 shares of Apple stock. The largest bearish delta came from selling calls.

The largest delta volume came from the 01-Dec-23 192.5 Call $AAPL 20231201 192.5 CALL$, with traders getting short 1,040,388 deltas on the single option contract.

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