Option Movers | Nvidia's Volume Surges 2.6 times; Micron Sees 86% Call Ratio Before Earnings

Market Overview

The Nasdaq rallied 1.3% on Tuesday, buoyed by strength in Nvidia and other tech megacaps, while the Dow slipped as retailers weighed and investors waited for crucial inflation data due out this week.

Regarding the options market, a total volume of 35,404,523 contracts was traded on Tuesday (June 25), down 14.6% from the previous trading day.

Top 10 Option Volumes

Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $Advanced Micro Devices(AMD)$, $Amazon(AMZN)$, $Carnival(CCL)$, $GameStop(GME)$, $Meta(META)$, $Chewy(CHWY)$, $Micron(MU)$

$Nvidia(NVDA)$ Shares surged nearly 7% on Tuesday, snapping out of a three-session tailspin that had erased about $430 billion from the artificial intelligence chipmaker's market value.

Nvidia call options, typically used to bet on a rising stock price, outnumbered puts by 1.4-to-1 over the last three sessions, Trade Alert data showed. That compared to a call-to-put ratio of 1.6-to-1 for the prior 10 sessions.

At the same time, Nvidia short sellers, who bet on declines in the stock, have gained $4.97 billion in the past three sessions combined, according to data analytics firm Ortex Technologies.

There are 5.64 million Nvidia option contracts traded on Tuesday, 2.6 times higher than the 90-day average trading volume. Call options account for 60% of overall option trades. Particularly high volume was seen for the $120 strike put option expiring June 28, with 287,619 contracts trading. $NVDA 20240719 120.0 PUT$

$Micron(MU)$ stock rose 1.52% on Tuesday. There are 245.42K Micron option contracts traded. Call options account for 70% of overall option trades. Particularly high volume was seen for the $150 strike call option expiring June 28, with 9,249 contracts trading. $MU 20240628 150.0 CALL$

Micron Technology is set to release its third-quarter earnings report for the 2024 fiscal year after the bell on Wednesday.

There are 1.30 million $Tesla(TSLA)$ option contracts traded on Tuesday. Call options account for 61% of overall option trades. Particularly high volume was seen for the $190 strike call option expiring June 28, with 122,059 contracts trading. $TSLA 20240628 190.0 CALL$

Unusual Options Activity

$Carnival(CCL)$ shares up 9% on Tuesday following better-than-expected second-quarter earnings. The company reported second-quarter adjusted earnings per share of 11 cents, beating the analyst consensus for a loss of 2 cents. Carnival reported quarterly sales of $5.781 billion, beating the street view of $5.675 billion.

There are 412.30K Carnival option contracts traded. Call options account for 77% of overall option trades. Particularly high volume was seen for the $18 strike call option expiring June 28, with 35,614 contracts trading. $CCL 20240628 18.0 CALL$

$Broadcom(AVGO)$ shares fell 0.72% on Tuesday. There are 151.66K Broadcom option contracts traded. Call options account for 67% of overall option trades. Particularly high volume was seen for the $1700 strike call option expiring June 28, with 6,192 contracts trading. $AVGO 20240628 1700.0 CALL$

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 bought a net equivalent of 799,446 shares of Faraday Future stock. The largest bullish delta came from buying calls. The largest delta volume came from the 15-Nov-24 0.5 Call, with traders getting long 685,233 deltas on the single option contract. $FFIE 20241115 0.5 CALL$

Top 10 bullish stocks: $Nvidia(NVDA)$, $Carnival(CCL)$, $Chewy(CHWY)$, $Robinhood(HOOD)$, $Patterson-UTI Energy(PTEN)$, $Snap(SNAP)$, $GameStop(GME)$, $Ginkgo Bioworks(DNA)$, $Faraday Future(FFIE)$, $Meta(META)$

Top 10 bearish stocks: $Advanced Micro Devices(AMD)$, $Apple(AAPL)$, $Alphabet(GOOGL)$, $Tesla(TSLA)$, $American Airlines(AAL)$, $Palantir(PLTR)$, $Walmart(WMT)$, $Nikola(NKLA)$, $Norwegian Cruise Line(NCLH)$; $Beyond Meat(BYND)$

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