Option Movers｜Lululemon’s Volume Soared Over 80%; This Financial Service Company Had 78% Call Options

Market Overview

U.S. stocks closed higher on Friday(June.2) after a labor market report showing moderating wage growth in May indicated the Federal Reserve may skip a rate hike in two weeks, while investors welcomed a Washington deal that avoided a catastrophic debt default.

The Dow Jones Industrial Average rose 2.12%, the S&P 500 gained 1.45%, and the Nasdaq Composite added 139.78 points, or 1.07%, to 13,240.77.

Regarding the options market, a total volume of 47,630,418 contracts was traded on Friday(June.2), up 19.18% from the previous trading day.

Top 10 Option Volumes

Top 10: SPY, TSLA, QQQ, IWM, VIX, AAPL, NVDA, AMZN, AMD, GOOGL

Options related to equity index ETFs are popular with investors, with 10.71 million $SPDR S&P 500 ETF Trust(SPY)$ contracts trading on Friday(June.2), and its volume rose 15.91% from the previous day. 52% of $SPDR S&P 500 ETF Trust(SPY)$ trades bet on bearish options.

$SoFi Technologies Inc.(SOFI)$ rose 3.08% on Friday, its annual shareholder meeting will be held on June 14 at 10 a.m. Eastern, and the agreement between President Joe Biden and House Speaker Kevin McCarthy involves the resuming of student loan repayments.

There were 371,900 $SoFi Technologies Inc.(SOFI)$ option contracts traded on Friday. Call options account for 78% of overall option trades. Particularly high volume was seen for the $7 strike call option expiring June 9, with 21,685 contracts trading.

Source: Tiger Trade App

Most Active Options

1. Most Active Trading Equities Options:

Special %Calls >70%: $Apple(AAPL)$; $Alphabet(GOOGL)$; $SoFi Technologies Inc.(SOFI)$; $Alibaba(BABA)$; $NIO Inc.(NIO)$; $Alphabet(GOOG)$

Data From CBOE Trader Alert, as of 2 June 2023 EDT

2. Most Active Trading ETFs Options

Special %Calls >70%:  $iShares MSCI Brazil ETF(EWZ)$; $iShares China Large-Cap ETF(FXI)$; $VIX Short-Term Futures 1.5X ETF(UVXY)$; $Nasdaq100 Bear 3X ETF(SQQQ)$;

Data From CBOE Trader Alert, as of 2 June 2023 EDT

Unusual Options Activity​​

Source: Market Chameleon

$Lululemon Athletica(LULU)$ soared 11.3% last Friday. It reported strong fiscal first-quarter earnings and sales as demand for high-end sportswear remained robust. The company also raised its guidance for the fiscal year 2023.

There were 199,600 $Lululemon Athletica(LULU)$ option contracts traded on Friday, jumping over 80% from the previous day. Call options account for 68% of overall option trades. Particularly high volume was seen for the $375 strike call option expiring June 9, with 1,921 contracts trading.

$T-Mobile US(TMUS)$ fell 5.56% on Friday, as Amazon is in discussions with wireless carriers about offering low-cost or potentially free nationwide mobile phone service to Prime members.

There were 166,600 $T-Mobile US(TMUS)$ option contracts traded on Friday. Call options account for 67% of overall option trades. Particularly high volume was seen for the $130 strike call option expiring June 9, with 6,191 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: $AT&T Inc(T)$; $Bank of America(BAC)$; $Wells Fargo(WFC)$; $JPMorgan Chase(JPM)$; $Caesars Entertainment(CZR)$; $DISH Network(DISH)$; $General Motors(GM)$; $Comerica(CMA)$; $Cisco(CSCO)$

Top 10 bearish stocks: $Tesla Motors(TSLA)$; $Apple(AAPL)$; $Amazon.com(AMZN)$; $Advanced Micro Devices(AMD)$; $Microsoft(MSFT)$; $PayPal(PYPL)$; $Dow Chemical(DOW)$; $NVIDIA Corp(NVDA)$; $Carnival(CCL)$

Source: Market Chameleon

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