Market Overview
Wall Street ended sharply higher on Thursday (May 25) after a blowout forecast from Nvidia sent the chipmaker's stock soaring and fueled a rally in AI-related companies, while investors watched for signs of progress in U.S. debt ceiling talks.
Regarding the options market, a total volume of 39,914,550 contracts was traded, up 6% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $NVDA(NVDA)$; $TSLA(TSLA)$; $AMD(AMD)$; $IWM(IWM)$; $AAPL(AAPL)$; $AMZN(AMZN)$; $MSFT(MSFT)$; $VIX(VIX)$
Source: Tiger Trade App
Options related to equity index ETFs are still popular with investors, with 8.07 million $SPDR S&P500 ETF Trust(SPY)$ (SPY) and 3.29 million $Invest QQQ Trust ETF(QQQ)$ (QQQ) options contracts trading on Thursday.
$NVIDIA Corp(NVDA)$ soared 24% to a record high close after the world's most valuable chipmaker forecast quarterly revenue 50% higher than estimates and said it was ramping up supply to meet demand for its artificial-intelligence (AI) chips. Investors exchanged almost $60 billion worth of Nvidia's shares, accounting for a fifth of all trading in S&P 500 stocks during the session, according to Refintiv data.
Traders rushed to the options market to bet big on Nvidia as the shares skyrocket: There are 2.75 million Nvidia option contracts traded on Thursday, almost three times the previous day. Call options account for 60% of overall option trades. The most popular trade is a call option tied to the shares jumping to $400 that expires Friday -- an indicator that some traders are expecting even more upside for Nvidia stock.
Source: Market Chameleon
Particularly striking is that the price of call option related to Nvidia soared on Thursday, with many options rising several times and dozens of times.
Source: Tiger Trade App
Most Active Options
1. Most Active Trading Equities Options:
Special %Calls >70%: $Palantir Technologies Inc.(PLTR)$, $C3.ai, Inc.(AI)$, $Alibaba(BABA)$, $Alphabet(GOOG)$, $PayPal(PYPL)$, $Taiwan Semiconductor Manufacturing(TSM)$
Data From CBOE Trader Alert, as of 25 May 2023 EDT
2. Most Active Trading ETFs Options
Special %Calls >70%: $Nasdaq100 Bear 3X ETF(SQQQ)$, $SPDR Gold Shares(GLD)$, $VIX Short-Term Futures 1.5X ETF(UVXY)$, $iShares Silver Trust(SLV)$
Data From CBOE Trader Alert, as of 25 May 2023 EDT
Special %Puts >70%: $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$, $SPDR S&P Regional Banking ETF(KRE)$, $Financial Select Sector SPDR Fund(XLF)$
Data From CBOE Trader Alert, as of 25 May 2023 EDT
Unusual Options Activity
Source: Market Chameleon
Nvidia’s stock surge buoyed many semiconductor names in Thursday trading, particularly $Advanced Micro Devices(AMD)$ and $Taiwan Semiconductor Manufacturing(TSM)$. AMD shares jumped 11% while TSMC stock soared 12% on Thursday. $VanEck Vectors Semiconductor ETF(SMH)$ also gained 8.6%.
Their options trading is also very active.
There are 1.39 million AMD option contracts traded on Thursday, almost 3.6 times the previous day. Call options account for 66% of overall option trades. Particularly high volume was seen for the $120 strike call option expiring May 26, with 90,239 contracts trading.
Source: Market Chameleon
There are 361.5K TSMC option contracts traded on Thursday. Call options account for 71% of overall option trades. Particularly high volume was seen for the $106 strike call option expiring May 26, with 14,699 contracts trading.
Source: Market Chameleon
There are 190.1K VanEck Vectors Semiconductor ETF option contracts traded on Thursday. Call options account for 55% of overall option trades. Particularly high volume was seen for the $147.5 strike call option expiring June 16, with 9,061 contracts trading.
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: $AMD(AMD)$, $NVDA(NVDA)$, $IWM(IWM)$, $EEM(EEM)$, $TSM(TSM)$, $PFE(PFE)$, $CPNG(CPNG)$, $ZM(ZM)$, $MSFT(MSFT)$, $SMH(SMH)$
Top 10 bearish stocks: $TSLA(TSLA)$, $AAPL(AAPL)$, $KEY(KEY)$, $GOOGL(GOOGL)$, $DIS(DIS)$, $NIO(NIO)$, $HYG(HYG)$, $PYPL(PYPL)$, $MPW(MPW)$, $META(META)$
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club
$(NVDA)$ $(AMD)$ $(TSM)$ $(SMH)$
Comments
PYPL needs to integrate bitcoin and altcoins at scale - with their market share in financial services, they’re excellently positioned to execute on this. It’s simple for PYPL, innovate or continue to rapidly lose market share - PYPL desperately needs to innovate to survive.
Now I’m not buying PYPL . A cheap stock at 12 times this years earnings. I look at that and easily see how its P/E is way too low compared to competitors. Competitors with similar growth even.
Not able to break morning high or hold 355. It’s funny people trying to squeeze out the last drop and then lose next week.
Now,,, The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure.
Global Investors Still Filling the Best Tech Dips like META and others for Long-term Future Gains.
It's Not Too Late to Invest in the Future... like NVDA... for a Better Financial Future.