Wall Street closed lower on Wednesday, as climbing Treasury yields pressured megacap stocks and investors grew less confident about strong rate cuts from the Federal Reserve, while corporate news pressured McDonald's and Coca-Cola.
Regarding the options market, a total volume of 43,875,910 contracts was traded on Wednesday.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$; $Tesla(TSLA)$; $Apple(AAPL)$; $Amazon(AMZN)$; $Meta(META)$; $Microsoft(MSFT)$; $AMD(AMD)$; $Mara Holdings(MARA)$; $MicroStrategy(MSTR)$; $Palantir(PLTR)$
$Tesla Motors(TSLA)$ CEO Elon Musk said he expects vehicle sales to grow 20% to 30% next year, reassuring investors the company was improving its core business of selling electric vehicles profitably, and reducing concerns about when it could produce a robotaxi.
The forecast, building on a target for "slight growth" in deliveries this year, pushed the company's shares up 12% in post-market trading on Wednesday.
A total number of 1.34 million options related to Tesla was traded. A particularly high trading volume was seen for the $220 strike call options expiring this Friday, with 47,112 options contracts trading on Wednesday. $TSLA 20241025 220.0 CALL$
Unusual Options Activity
$MicroStrategy(MSTR)$'s shares dipped by 2.6% on Wednesday.
The enterprise software company, which holds 252,220 bitcoin, or roughly 1.2% of bitcoin's total supply of 21 million, has seen its shares up 248% so far this year through late Tuesday, according to Dow Jones Market Data. In comparison, bitcoin is up 59% year to date.
A total number of 285.08K options related to MicroStrategy was traded, of which 63% were put options. A particularly high trading volume was seen for the $220 strike call options expiring Oct. 25, with 18,365 options contracts trading on Wednesday. $MSTR 20241025 220.0 CALL$
$Spirit Airlines(SAVE)$ saw a significant surge of 46% on Wednesday. The airline is once again exploring a merger deal with Frontier Group Holdings Inc. amid potential bankruptcy filing talks.
A total number of 201.64K options related to Spirit Airlines was traded, of which 76% were call options. A particularly high trading volume was seen for the $3 strike call options expiring Oct. 25, with 28,550 options contracts trading. The $3 strike call option expiring this Friday surged 1200% on Wednesday. $SAVE 20241025 3.0 CALL$
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 -723,643 shares of $Taiwan Semiconductor Manufacturing(TSM)$ stock. The largest bearish delta came from selling calls. The largest delta volume came from the 25-Oct-24 Call, with traders getting short 332,194 deltas on the single option contract.
Top 10 bullish stocks: $Lucid(LCID)$; $Nvidia(NVDA)$; $Innoviz Technologies(INVZ)$; $Core Scientific(CORZ)$; $AT&T(T)$; $Verizon(VZ)$; $Iovance Biotherapeutics(IOVA)$; $Companhia Siderurgica(SID)$; $Under Armour(UAA)$; $Carvana(CVNA)$
Top 10 bearish stocks: $Amazon(AMZN)$; $New Gold(NGD)$; $Mara Holdings(MARA)$; $Lumen Technologies(LUMN)$; $TSMC(TSM)$; $Alphabet(GOOGL)$; $AMD(AMD)$; $Carnival(CCL)$; $Cleanspark(CLSK)$; $Ford(F)$
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