The Dow Jones Industrial Average and S&P 500 closed lower on Monday (Oct. 21), retreating from Friday's record high closes and six straight weekly gains as Treasury yields rose and investors wary of high valuations awaited earnings from major companies.
Regarding the options market, a total volume of 37,722,576 contracts was traded on Monday.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$; $Tesla(TSLA)$; $Apple(AAPL)$; $Amazon(AMZN)$; $SoFi Technologies(SOFI)$; $AMD(AMD)$; $Super Micro Computer(SMCI)$; $Mara Holdings(MARA)$; $Palantir(PLTR)$; $Centene(CNC)$
$NVIDIA Corp(NVDA)$ stock surged 4.1% Monday to close at a fresh high and has nearly tripled in value this year as demand boomed for the company’s chips to support AI.
Late last week, Bank of America analysts lifted their price target for Nvidia even higher to $190 from $165, calling it a “top AI pick.”1 The analysts pointed to recent comments from Nvidia CEO Jensen Huang, who said that demand for the company's Blackwell AI chips is “insane” in an interview with CNBC earlier this month.
A total number of 3.57 million options related to $Nvidia(NVDA)$ was traded. A particularly high trading volume was seen for the $140 strike put options expiring this Friday, with 158,764 options contracts trading on Monday. $NVDA 20241025 140.0 PUT$
Unusual Options Activity
$Centene(CNC)$'s shares dipped 1.64% on Monday. The company’s earnings report is expected to be released on October 25.
A total number of 240.75K options related to Centene was traded, of which 54% were put options. A particularly high trading volume was seen for the $60 strike put options expiring Dec. 20, with 125,738 options contracts trading on Monday. $CNC 20241220 60.0 PUT$
Shares of $Spirit Airlines(SAVE)$ surged 53% on Monday after the ultra low-cost carrier reached a deal with its credit card processor to extend a debt refinancing deadline by two months until Dec. 23.
The agreement with U.S. Bank National Association provides some elbow room to Spirit to refinance its $1.1 billion loyalty bonds due to mature next year. The previous refinancing deadline was Oct. 21.
A total number of 211.72K options related to Spirit Airlines was traded, of which 55% were put options. The $2.5 strike call option expiring this Friday surged 143% on Monday. $SAVE 20241025 2.5 CALL$
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 653,032 shares of $Grab Holdings(GRAB)$ stock. The largest bullish delta came from buying calls. The largest delta volume came from the 15-Nov-24 Call, with traders getting long 227,094 deltas on the single option contract.
Top 10 bullish stocks: $Nvidia(NVDA)$; $Spirit Airlines(SAVE)$; $Oklo(OKLO)$; $Apple(AAPL)$; $Tesla(TSLA)$; $Grab(GRAB)$; $Terawulf(WULF)$; $Palantir(PLTR)$; $Core Scientific(CORZ)$; $SoFi Technologies(SOFI)$
Top 10 bearish stocks: $Robinhood(HOOD)$; $Lucid(LCID)$; $New Gold(NGD)$; $Coinbase(COIN)$; $Ford(F)$; $Verizon(VZ)$; $Nio(NIO)$; $Unity(U)$; $Barrick Gold(GOLD)$; $Pan American Silver(PAAS)$
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