Market Overview
Wall Street's main indexes ended sharply lower on Thursday(July.6) in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates.
The Dow Jones Industrial Average fell 1.07%, the S&P 500 lost 0.79%, and the Nasdaq Composite dropped 0.82%.
Regarding the options market, a total volume of 37,556,892 contracts was traded on Thursday(July.6), up 23.01% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPDR S&P 500 ETF Trust(SPY)$, $Invesco QQQ Trust(QQQ)$, $Tesla Motors(TSLA)$, $Cboe Volatility Index(VIX)$, $iShares Russell 2000 ETF(IWM)$, $Apple(AAPL)$, $Verizon(VZ)$, $Meta Platforms, Inc.(META)$, $NVIDIA Corp(NVDA)$, $Amazon.com(AMZN)$
Options related to equity index ETFs are popular with investors, with 8.20 million $SPDR S&P 500 ETF Trust(SPY)$ and 3.20 million $Invesco QQQ Trust(QQQ)$ options contracts trading on Thursday.
$Verizon(VZ)$ slid 0.93% on Thursday as its ex-dividend date is scheduled for July 7, 2023. It is slated to pay a dividend of $0.65 per share on August 1, 2023.
There were 699,087 $Verizon(VZ)$ option contracts traded on Thursday, surging over 600% from the previous trading day. Call options account for 95% of overall option trades. Particularly high volume was seen for the $36 strike call option expiring July 21, with 249,076 contracts trading.
Source: Tiger Trade App
Most Active Trading Equities Options
Special %Calls >70%: $Verizon(VZ)$; $Mullen Automotive(MULN)$; $Alibaba(BABA)$; $Rivian Automotive, Inc.(RIVN)$; $Meta Platforms, Inc.(META)$
Data From CBOE Trader Alert, as of 6 July 2023 EDT
Special %Puts >70%: $Nikola Corporation(NKLA)$;
Data From CBOE Trader Alert, as of 6 July 2023 EDT
Unusual Options Activity
Source: Market Chameleon
$Nikola Corporation(NKLA)$ crashed 9.09% on Thursday. It adjourned its shareholder meeting until Aug. 3 as it failed to secure support for its plan to issue new stock.
There were 347,505 $Nikola Corporation(NKLA)$ option contracts traded on Thursday. Put options account for 80% of overall option trades. Particularly high volume was seen for the $1 strike put option expiring July 21, with 73,294 contracts trading. $NKLA 20230721 1.0 PUT$
$Mullen Automotive(MULN)$ surged 29.02% on Thursday as it has authorised a stock repurchase program for up to $25 million in shares of its outstanding common stock until December 31, 2023.
There were 247,817 $Mullen Automotive(MULN)$ option contracts traded on Thursday, doubling from the previous trading day. Call options account for 93% of overall option trades. Particularly high volume was seen for the $0.5 strike call option expiring July 7, with 55,408 contracts trading.$MULN 20230707 0.5 CALL$
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: $Verizon(VZ)$, $Intel(INTC)$, $Warner Bros. Discovery(WBD)$, $Micron Technology(MU)$, $VF Corp(VFC)$, $PG&E Corp(PCG)$, $Best Buy(BBY)$, $Kroger(KR)$, $Merck(MRK)$, $MGM Resorts International(MGM)$
Top 10 bearish stocks: $AT&T Inc(T)$, $Tesla Motors(TSLA)$, $PayPal(PYPL)$, $Ford(F)$, $Walt Disney(DIS)$, $Apple(AAPL)$, $Bank of America(BAC)$, $Carnival(CCL)$, $Alphabet(GOOGL)$, $Meta Platforms, Inc.(META)$
Source: Market Chameleon
Based on option delta volume, traders bought a net equivalent of 10,889,970 shares of stock. The largest bullish delta came from buying calls. The largest delta volume came from the 21-Jul-23 36 Call $VZ 20230721 36.0 CALL$, with traders getting long 7,879,228 deltas on the single option contract.
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$(VZ)$ $(NKLA)$ $(MULN)$
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