Unusual Options talks? How the M&A create opportunities?

August 14th, market rebound after a brief pullback last week $S&P 500(.SPX)$ 。At the same time, there was a moderate correction in $DJIA(.DJI)$.

$NVIDIA Corp(NVDA)$ surged by 7%, leading the entire tech sector higher, which is understandable considering its leadership in AI.

Ironically, earlier, analysts from $Morgan Stanley(MS)$ had mentioned that based on historical data from several past "bubble" market scenarios, the current AI surge had passed its peak, implying potential downward pressure.

However, today, they have come forward to state that "the industry's growth prospects remain highly optimistic, and investors should consider buying NVIDIA during the Sell Off opportunity before the earnings report," again, it's Morgan Stanley.

Moreover, wealthy individuals from the Middle East are placing substantial orders for NVIDIA's high-performance chips, creating a supply-demand mismatch.

In terms of unusual options activities, there's notable activity in meme stocks and companies related to acquisitions.

Among them, due to court support for the conversion plan of $AMC Entertainment Preferred(APE)$ , $AMC Entertainment(AMC)$ experienced a single-day drop of over 30%, while APE gained nearly 20 points. The tide indeed turns, as last month, APE's conversion plan was rejected by the court, causing a drop, while AMC surged. Meme stocks truly exhibit volatility.

Of course, for investors, engaging in Pair Trades might be a way to mitigate one-sided losses, with most investors expecting the prices of both to converge. However, another possibility is that both prices might decline, as management might release new shares arbitrarily.

$U.S. Steel(X)$ has also received multiple invitations, leading to a more than 40% surge in its stock price in a single day, consequently causing a surge in options activities around the 30 mark.

Concerning the upcoming weekend, in anticipation of potential new invitation schemes, numerous bearish Call options might be closed out. One of the acquiring parties, $Cliffs Natural Resources(CLF)$ also exhibits active options trading due to the strong synergy effect.

$Manchester United PLC(MANU)$ , the club subject to acquisition rumors, there's a significant volume of large orders for near-strike PUT options next month, perhaps indicating potential new variables?

Currently, FC Barcelona is grappling with debt issues, with several major audit firms conducting remote audits for the club.

Furthermore, there has been unusual activity in the March-expiring PUT options for $Intel(INTC)$ a company that has seen relatively modest gains in the chip sector.

As for industry leader $NVIDIA Corp(NVDA)$ there are reports of someone purchasing its September 1st-expiring calls at a significantly favorable price, coinciding with the second week after their financial report. The intention to increase holdings appears quite evident.