Market Overview
The S&P 500 ebbed lower Friday, weighed down by a decline in Nvidia shares, but held onto its third consecutive week of gains.
The benchmark index dipped 0.2%, bringing its week-to-date rise to 0.6%. The Nasdaq Composite shed 0.2% for the day and was little changed for the week. The Dow Jones Industrial Average was the relative outperformer, inching up slightly to bring its weekly gain to 1.5%.
Regarding the options market, a total volume of 47,456,492 contracts was traded.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $Advanced Micro Devices(AMD)$, $Amazon(AMZN)$, $GameStop(GME)$, $Palantir(PLTR)$, $Micron(MU)$, $Microsoft(MSFT)$, $Super Micro Computer(SMCI)$
Source: Tiger Trade App
$Nvidia(NVDA)$ shares ended down 3.22% on Friday after declining more than 3.5% on Thursday
There are 9.16 million Nvidia option contracts traded on Friday, down 14% from the previous trading day. Call options account for 59% of overall option trades. Particularly high volume was seen for the $130 strike call option expiring June 21, with 454,229 contracts trading.
According to Nvidia's regulatory filings with the U.S. Securities and Exchange Commission (SEC,) Huang has been busy offloading shares.
In the last week alone, Huang sold shares worth over $94 million, according to Nvidia's Form 4 filings.
All in all, Huang has sold 720,000 shares of Nvidia between June 13 to June 21, netting him $94.64 million.
He still owns over 866 million shares of the company, either directly or indirectly through trusts.
$Micron(MU)$ stock fell 3.22% on Friday. There are 397.95K Micron option contracts traded on Friday, 3.19 times higher than the 90-day average trading volume. Call options account for 64% of overall option trades. Particularly high volume was seen for the $140 strike call option expiring June 21, with 27,254 contracts trading.
Micron Technology, the leading-edge memory chip design and manufacturer, will release its fiscal Q3 earnings on Wednesday, June 26.
For the May-ended quarter, revenue growth should accelerate again according to FactSet, up 78% to $6.66 billion. Long known as a provider of memory and flash storage for computers, Micron is seeing strong memory demand from cloud providers, which use high-bandwidth memory in AI data centers.
After losing $4.45 a share in its latest fiscal year 2023, Micron analysts expect the company will earn 59 cents in fiscal 2024 and a whopping $8.28 in fiscal 2025.
Unusual Options Activity
Source: Market Chameleon
$GameStop(GME)$ shares dropped 6.49% on Friday. There are 652.93K GameStop option contracts traded on Friday. Call options account for 72% of overall option trades. Particularly high volume was seen for the $25 strike call option expiring June 21, with 56,690 contracts trading.
$Gilead Sciences(GILD)$ shares rise 3.18% on Friday. There are 83.40K Gilead Sciences option contracts traded on Friday. Call options account for 79% of overall option trades. Particularly high volume was seen for the $70 strike call option expiring June 21, with 6,064 contracts trading.
On Thursday before the market opened, Gilead announced efficacy data for its possible HIV prevention drug, Lenacapavir. The twice-yearly injectable indicated a 100% efficacy for HIV prevention in cisgender women. This data comes from the company's Phase 3 PURPOSE 1 trial.
In addition, the trial met its key efficacy endpoints. Specifically, superiority of twice-year lenacapavir compared to once-daily oral Truvada and background HIV incidence.
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 -2,985,064 shares of Nvidia stock. The largest bearish delta came from selling calls. The largest delta volume came from the 21-Jun-24 127 Call, with traders getting short 3,943,304 deltas on the single option contract.
Top 10 bullish stocks: $Faraday Future(FFIE)$, $Virgin Galactic(SPCE)$, $Trump Media & Technology(DJT)$, $Vertiv Holdings(VRT)$, $Lucid(LCID)$, $Cipher Mining(CIFR)$, $Ocugen(OCGN)$, $Tesla(TSLA)$, $Wynn(WYNN)$, $Mobileye Global(MBLY)$
Source: Market Chameleon
Top 10 bearish stocks: $Nvidia(NVDA)$, $Advanced Micro Devices(AMD)$, $Amazon(AMZN)$, $GameStop(GME)$, $Sirius XM(SIRI)$, $Pfizer(PFE)$, $Marathon Digital(MARA)$, $Alphabet(GOOGL)$, $Ford(F)$; $Petrobras(PBR)$
Source: Market Chameleon
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