Market Overview
The Dow and S&P 500 ended higher on Friday (May 31) and the Dow registered its biggest daily percentage gain since November 2023 as month-end repositioning drove a late sharp rally, with all three major indexes posting strong gains for May.
Regarding the options market, a total volume of 47,891,835 contracts was traded, up 24% from the previous trading day.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$, $TSLA(TSLA)$, $AAPL(AAPL)$, $AMD(AMD)$, $AMZN(AMZN)$, $DELL(DELL)$, $CRM(CRM)$, $MSFT(MSFT)$, $META(META)$, $PLTR(PLTR)$
Source: Tiger Trade App
$Dell Technologies Inc.(DELL)$ shares tumbled 17.9% on Friday after it forecast current-quarter profit below market estimates and signaled that higher costs to build servers that meet heavy AI workloads would dent its annual margins.
There are 616.9K Dell option contracts traded on Friday, up 67% from the previous trading day. Call options account for 58% of overall option trades. Particularly high volume was seen for the $140 strike call option expiring May 31, with 27,117 contracts trading.
Unusual Options Activity
Source: Market Chameleon
$Salesforce(CRM)$ shares rallied 7.5% on Friday after suffering its biggest drop in two decades.
The shares closed down 20% Thursday, marking the stock’s worst day in nearly 20 years. Its worst trading day on record is July 21, 2004, when shares fell 27% just days after the company went public.
The drop comes after Salesforce on Wednesday reported fiscal first-quarter results that missed Wall Street’s estimates for revenue for the first time since 2006. It also gave lighter-than-expected guidance.
There are 513K Salesforce option contracts traded on Friday, down 46% from the previous trading day. Call options account for 67% of overall option trades. Particularly high volume was seen for the $230 strike call option expiring May 31, with 76,902 contracts trading.
$GameStop(GME)$ shares are set for a wild ride at Monday’s opening after the Reddit account that drove the meme-stock mania of 2021 posted what appeared to be a $116 million position in the stock.
The June 2 screenshot by Keith Gill, who goes by DeepF— Value on Reddit, shows five million shares bought at $21.27 per share. It was the account’s first post in three years. The screenshot, which included option positioning, couldn’t be verified.
There are 313.7K Salesforce option contracts traded on Friday, up 8% from the previous trading day. Call options account for 77% of overall option trades. Particularly high volume was seen for the $23 strike call option expiring May 31, with 25,169 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.
Based on option delta volume, traders sold a net equivalent of -4,493,892 shares of Apple stock. The largest bearish delta came from selling calls. The largest delta volume came from the 31-May-24 192.5 Call, with traders getting short 2,810,490 deltas on the single option contract.
Top 10 bullish stocks: $NEE(NEE)$, $HPE(HPE)$, $JBLU(JBLU)$, $S(S)$, $LMT(LMT)$, $VFC(VFC)$, $VST(VST)$, $SMMT(SMMT)$, $SIRI(SIRI)$, $GPS(GPS)$
Source: Market Chameleon
Top 10 bearish stocks: $AAPL(AAPL)$, $CRM(CRM)$, $NVDA(NVDA)$, $DJT(DJT)$, $F(F)$, $AMZN(AMZN)$, $TSLA(TSLA)$, $INTC(INTC)$, $MAXN(MAXN)$; $C(C)$
Source: Market Chameleon
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