The Dow and S&P 500 edged lower on Monday (April 2nd) dragged down by investor worries over the timing of interest rate cuts by the Federal Reserve after stronger-than-expected manufacturing data pushed Treasury yields higher.
Regarding the options market, a total volume of 33,517,648 contracts was traded on Monday.
Top 10 Option Volumes
Top 10:$TSLA(TSLA)$; $NVDA(NVDA)$; $AMD(AMD)$; $AAPL(AAPL)$; $MU(MU)$; $AMZN(AMZN)$; $PLTR(PLTR)$; $DJT(DJT)$; $AMC(AMC)$; $MSFT(MSFT)$
Source: Tiger Trade App
$Tesla(TSLA)$ is expected to report first-quarter deliveries on Tuesday. The EV giant may be headed for a gloomy milestone as waning demand for electric vehicles and elevated interest rates take a toll on sales.
On average, analysts surveyed by Bloomberg estimate that Tesla delivered 453,964 vehicles in the quarter. That would be down more than 6% from the company’s record showing in the fourth quarter, which tends to be the best time of year for sales.
Ahead of the delivery numbers, a total number of 1.31 million options related to TSLA shares was traded. A particularly high trading volume was seen for the $170 strike put option expiring this Friday, with a total number of 93,434 options contracts trading as of Monday.
Source: Market Chameleon
$Trump Media & Technology Group (DJT)$ shares declined 21.5% to $48.66, falling for a second-straight session after the stock rose 24% last week following its trading debut. A new regulatory filing released Monday said Trump Media lost $58.2 million in 2023 on sales of $4.13 million. Meanwhile, Barron’s reported that former President Donald Trump stands to receive 36 million additional shares of Trump Media, the owner of Truth Social, that could vest in the coming month under the terms of an earnout agreement with the company.
A total number of 261K million options related to DJT shares was traded. Among total open interest, 72% were put options. A particularly high trading volume was seen for the $50 strike put option expiring this Friday, with a total number of 7,799 options contracts trading as of Monday.
Unusual Options Activity
Source: Market Chameleon
$Micron Technology(MU)$ stock jumped 5.4% to $124.30 and was one of the top stocks in the S&P 500 on Monday after analysts at BofA Securities raised their price target on the chip maker to $144 from $120 and maintained their Buy rating. Analyst Vivek Arya said Micron shares have room to grow as demand for high-bandwidth memory increases.
A total number of 506,761 options related to Micron shares was traded, of which 68% were call options. A particularly high trading volume was seen for the $130 strike call option expiring this Friday, with a total number of 42,732 options contracts trading as of Monday.
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: $WBD(WBD)$; $LYFT(LYFT)$; $GOOG(GOOG)$; $NVDA(NVDA)$; $TSLA(TSLA)$; $MU(MU)$; $MTTR(MTTR)$; $NXE(NXE)$; $META(META)$; $BABA(BABA)$
Top 10 bearish stocks: $AAPL(AAPL)$; $DJT(DJT)$; $C(C)$; $AIG(AIG)$; $CLF(CLF)$; $GME(GME)$; $PTEN(PTEN)$; $CRK(CRK)$; $WMT(WMT)$; $NIO(NIO)$
Source: Market Chameleon
Based on option delta volume, traders sold a net equivalent of -3,219,484 shares of $Apple(AAPL)$ stock. The largest bearish delta came from selling calls. The largest delta volume came from the 05-Apr-24 172.5 Call, with traders getting short 1,719,954 deltas on the single option contract.
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$(TSLA)$ $(AAPL)$ $(DJT)$ $(MU)$
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