Market Overview
The S&P 500 and Nasdaq closed at record highs on Tuesday (June 18), buoyed by Nvidia's continued surge to new peaks, while the Dow ended barely higher in subdued pre-holiday trading following softer-than-expected U.S. retail sales data.
Regarding the options market, a total volume of 39,449,542 contracts was traded, down 12% from the previous trading day.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$, $AAPL(AAPL)$, $TSLA(TSLA)$, $AMD(AMD)$, $PLTR(PLTR)$, $GME(GME)$, $AMZN(AMZN)$, $TSM(TSM)$, $MU(MU)$, $DELL(DELL)$
Source: Tiger Trade App
$Nvidia(NVDA)$ became the world's most valuable company on Tuesday, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate artificial intelligence technology.
Shares of the chipmaker climbed 3.5% to $135.58, lifting its market capitalization to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.
There are 6.02 million Nvidia option contracts traded on Tuesday, up 36% from the previous trading day. Call options account for 63% of overall option trades. Particularly high volume was seen for the $135 strike call option expiring June 21, with 310,983 contracts trading. NVDA 20240621 135.0 CALL
Other chip stocks also extended their recent rallies, boosting the Philadelphia SE Semiconductor index to a record high. TSMC, Qualcomm, Arm Holdings and Micron advanced between 2.1% and 8.7%, with Micron hitting a record high.
There are 457.3K $TSMC(TSM)$ option contracts traded on Tuesday, up 141% from the previous trading day. Call options account for 70% of overall option trades. Particularly high volume was seen for the $165 strike call option expiring August 16, with 68,192 contracts trading. TSM 20240816 165.0 CALL
There are 448.1K $Micron(MU)$ option contracts traded on Tuesday, up 42% from the previous trading day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $160 strike call option expiring June 21, with 40,028 contracts trading. MU 20240621 160.0 CALL
Unusual Options Activity
Source: Market Chameleon
$GameStop(GME)$ shares dropped another 2.1% on Tuesday, as investors continued to digest the company’s short annual meeting a day earlier that wrapped up in about 20 minutes. CEO Ryan Cohen told investors that the videogame retailer plans to operate a smaller network of stores, but did not provide details on what it intends to do with its cash pile.
There are 576.9K GameStop option contracts traded on Tuesday, down 41% from the previous trading day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $30 strike call option expiring June 21, with 41,938 contracts trading. GME 20240621 30.0 CALL
$Dell(DELL)$ stocks were also boosted by Nvidia. Dell shares rallied more than 5% on Tuesday, aided in part by an aggressively bullish research note by Morgan Stanley hardware analyst Erik Woodring. He reiterated his Overweight rating on the stock, which he designates a “Top Pick.” The analyst has a $155 price target on Dell shares, but said they could rise to $200.
There are 419.7K Dell option contracts traded on Tuesday, up 48% from the previous trading day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $155 strike call option expiring June 21, with 23,137 contracts trading. DELL 20240621 155.0 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.
Based on option delta volume, traders sold a net equivalent of -7,638,132 shares of Apple stock. The largest bearish delta came from selling calls. The largest delta volume came from the 21-Jun-24 215 Call, with traders getting short 3,338,853 deltas on the single option contract. AAPL 20240621 215.0 CALL
Top 10 bullish stocks: $NVDA(NVDA)$, $PLTR(PLTR)$, $ARM(ARM)$, $SIRI(SIRI)$, $TSM(TSM)$, $RKLB(RKLB)$, $PDD(PDD)$, $CHWY(CHWY)$, $SID(SID)$, $OWL(OWL)$
Source: Market Chameleon
Top 10 bearish stocks: $AAPL(AAPL)$, $AMZN(AMZN)$, $DJT(DJT)$, $QCOM(QCOM)$, $AMD(AMD)$, $MAXN(MAXN)$, $TSLA(TSLA)$, $FFIE(FFIE)$, $C(C)$; $SOFI(SOFI)$
Source: Market Chameleon
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