Market Overview
The Nasdaq ended sharply higher on Thursday(Dec 7) after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence.
Regarding the options market, a total volume of 36,855,630 contracts was traded, down 11% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPDR S&P 500 ETF Trust(SPY)$, $Invesco QQQ Trust-ETF(QQQ)$, $Tesla Motors(TSLA)$, $Advanced Micro Devices(AMD)$ ; $Apple(AAPL)$ ; $iShares Russell 2000 ETF(IWM)$, $Alphabet(GOOGL)$ ; $NVIDIA Corp(NVDA)$, $Nikola Corporation(NKLA)$
Shares of Alphabet (GOOGL) jumped 5.3% as analysts cheered the launch of the Google-parent's newest AI model, while AMD soared nearly 10% after the company estimated the potential market for its data center AI chips could reach $45 billion this year.
There are 1.78M AMD option contracts traded on Thursday, up 158% from previous trading day. Call options account for 64% of overall option trades. Particularly high volume was seen for the $125 strike call option expiring Dec 8 with 69,377 contracts trading.$AMD 20231208 125.0 CALL$
There are 831.4K Alphabet option contracts traded on Thursday, up 360% from previous trading day. Call options account for 61% of overall option trades. Particularly high volume was seen for the $140 strike call option expiring Dec 15 with 60,295 contracts trading.$GOOGL 20231208 140.0 CALL$
Unusual Options Activity
Nikola Corp. shares plunged 23% on Thursday trading after the electric vehicle manufacturer announced plans to issue $100 million in new shares and $200 million in so-called green convertible senior notes due in 2026.
A total number of 734.6K options related to Nikola was traded on Thursday, of which put options account for 76%. A particularly high trading volume was seen for the $1 strike put options expiring Jan 17, 2025 with a total number of 275,228 option contracts trading on Thursday.$NKLA 20250117 1.0 PUT$
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: NVDA, AMD, GM, META, KVUE, HPQ, CCL, INTC, WFC, WBA
Top 10 bearish stocks: TSLA, AAPL, WMT, T, XOM, ABBV, PFE, MET, DIS, C
Based on option delta volume, traders bought a net equivalent of 1,307,762 shares of Nvidia stock. The largest bearish delta came from selling calls. The largest delta volume came from the 08-Dec-23 460 Put, with traders getting long 421,153 deltas on the single option contract.$NVDA 20231208 460.0 PUT$
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