Option Movers｜Traders Bet on Tesla Ending at $280 This Week; Rivian’s Volume Rose 40% While Lucid Had 81% Call Options

Market Overview

Wall Street's main indexes ended with slim gains in a holiday-shortened session on Monday(July.3), helped by a surge in Tesla and strength in bank shares.

The Dow Jones Industrial Average rose 0.03%, the S&P 500 gained 0.12%, and the Nasdaq Composite added 0.21%.

Regarding the options market, a total volume of 20,720,297 contracts was traded on Monday(July.3), down 50.76% from the previous trading day.

Top 10 Option Volumes

Top 10: $SPDR S&P 500 ETF Trust(SPY)$, $Tesla Motors(TSLA)$, $Invesco QQQ Trust(QQQ)$, $Apple(AAPL)$, $Rivian Automotive, Inc.(RIVN)$, $NVIDIA Corp(NVDA)$, $Amazon.com(AMZN)$, $Nikola Corporation(NKLA)$, $iShares Russell 2000 ETF(IWM)$, $AMC Entertainment(AMC)$

$Tesla Motors(TSLA)$ gained 6.9% on Monday as it handed 466,140 vehicles in the April to June period, up 10% from the preceding quarter, and 83% higher from a year earlier.

There were 2,024,817 $Tesla Motors(TSLA)$ option contracts traded on Monday. Call options account for 61% of overall option trades. Particularly high volume was seen for the $280 strike call option expiring July 7, with 104,273 contracts trading.

Source: Tiger Trade App

Most Active Options

1. Most Active Trading Equities Options:

Special %Calls >70%: $Amazon.com(AMZN)$, $NIO Inc.(NIO)$, $JPMorgan Chase(JPM)$, $Carnival(CCL)$, $XPeng Inc.(XPEV)$, $Riot Blockchain, Inc.(RIOT)$, $Lucid Group Inc(LCID)$, $Alphabet(GOOGL)$

Special %Puts >70%: $Nikola Corporation(NKLA)$

Data From CBOE Trader Alert, as of 3 July 2023 EDT

2. Most Active Trading ETFs Options

Special %Calls >70%: $iShares MSCI Brazil ETF(EWZ)$, $Nasdaq100 Bear 3X ETF(SQQQ)$, $ProShares Bitcoin Strategy ETF(BITO)$, $VanEck Gold Miners ETF(GDX)$, $S&P Biotech Bull 3X Shares(LABU)$

Data From CBOE Trader Alert, as of 3 July 2023 EDT

Unusual Options Activity​​

Source: Market Chameleon

$Rivian Automotive, Inc.(RIVN)$ surged 17.41% on Monday as it will expand deliveries of a battery-electric van it makes for Amazon to Europe. It will be the company’s first commercial shipments outside the US.

There were 430,219 $Rivian Automotive, Inc.(RIVN)$ option contracts traded on Monday, rising over 40% from the previous day. Call options account for 64% of overall option trades. Particularly high volume was seen for the $19 strike call option expiring July 7, with 20,904 contracts trading.

$Lucid Group Inc(LCID)$ jumped 7.26% on Monday though Citi analyst Itay Michaeli resumed its coverage with a Neutral rating and an $8 price target over the weekend. 

There were 154,600 $Lucid Group Inc(LCID)$ option contracts traded on Monday. Call options account for 81% of overall option trades. Particularly high volume was seen for the $7.5 strike call option expiring July 7, with 25,510 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: $JPMorgan Chase(JPM)$, $Charles Schwab(SCHW)$, $Verizon(VZ)$, $Hilton(HLT)$, $American Airlines(AAL)$, $Norwegian Cruise Line(NCLH)$, $Citigroup(C)$, $Netflix(NFLX)$, $Target(TGT)$, $ConocoPhillips(COP)$

Top 10 bearish stocks: $Apple(AAPL)$, $Amazon.com(AMZN)$, $Carnival(CCL)$, $Johnson & Johnson(JNJ)$, $Bank of America(BAC)$, $Microsoft(MSFT)$, $Ford(F)$, $Wal-Mart(WMT)$, $NVIDIA Corp(NVDA)$, $Occidental(OXY)$

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