U.S. stocks rallied sharply to close at record highs on Wednesday (Nov 6) after Republican Donald Trump won the 2024 U.S. presidential election in a stunning comeback four years after being voted out of the White House.
Regarding the options market, a total volume of 61,413,490 contracts was traded on Wednesday.
Top 10 Option Volumes
Top 10:$NVDA(NVDA)$; $TSLA(TSLA)$; $SMCI(SMCI)$; $AMZN(AMZN)$; $PLTR(PLTR)$; $DJT(DJT)$; $COIN(COIN)$; $AAPL(AAPL)$; $F(F)$; $MARA(MARA)$
Source: Tiger Trade App
$Tesla Inc.(TSLA)$ shares soared 14.75% on Wednesday. Wedbush Securities predicts Tesla Inc.'s artificial intelligence initiatives could see major gains under a Trump presidency, despite potential headwinds for the broader electric vehicle sector.
The Tesla chief executive officer was arguably the most prominent supporter of Trump this election cycle, backing Republicans with more than $130 million in spending. He also was a relentless messenger supporting the GOP and attacking Democrats on X, his social media network.
“The biggest positive from a Trump win would be for Tesla and Musk,” Daniel Ives, a Wedbush Securities analyst, wrote in a report on what a likely victory for the Republican would mean for technology companies. Tesla would be at a competitive advantage over other manufacturers in the event the US reduces tax incentives for electric vehicles, he said.
A total number of 3.42 million options related to $Tesla(TSLA)$ was traded, up 139% from the previous trading day. The 15% rally in TSLA stock spurred huge gains in related bullish options. The $285 strike call option expiring this Friday surged 710%+ on Wednesday.
Source: Tiger Trade App
Unusual Options Activity
Source: Market Chameleon
$Coinbase(COIN)$ jumped 31.1% after Bitcoin topped $76,000, a record high, as Trump declared victory.
A total number of 850,507 options related to Coinbase was traded, of which 73% were call options.
Based on option delta volume, traders bought a net equivalent of 1,969,191 shares of Coinbase stock. The largest bullish delta came from buying calls.
Source: Market Chameleon
$Palantir Technologies(PLTR)$ stock jumped over 8% and hit new all-time highs on Wednesday, continuing to surge on the back of strong earnings to start the week.
Wedbush analyst Dan Ives maintained an Outperform rating on the stock and raised his price target from $45 to $57, citing “robust” quarterly results featuring “beats across the board” and a continued acceleration of deal momentum related to the company’s AI platform.
Broader markets soared after Donald Trump won the 2024 U.S. presidential election. Markets may be reacting to potential shifts in policy that could come with a second Trump presidency, including tax cuts and changes to trade tariffs.
A total number of 1,009,483 options related to $Palantir(PLTR)$ was traded, of which 60% were call options. Trading volume of $55 strike call options are particularly high, with 60,522 options contracts trading on Wednesday.
Source: Market Chameleon
Shares of $Super Micro(SMCI)$ tumbled 18% on Wednesday. Super Micro Computer, whose auditor unexpectedly stepped down last week, flagged uncertainty about the timing of its annual report but said a probe about accounting practices had not found evidence of fraud by the company.
The company said it expects net sales between $5.5 billion to $6.1 billion for the second quarter, compared with analysts' estimates of $6.86 billion, according to data compiled by LSEG.
It said the company expects profits between 48 cents and 58 cents per share, far below estimates of 75 cents per share.
A total number of 1,190,287 options related to $Super Micro(SMCI)$ shares was traded, 3.5 times higher than the 90-day average trading volume. Trading volume of $20 strike put options are particularly high, with 61,076 contracts trading on Wednesday.
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.
Top 10 bullish stocks: $NVDA(NVDA)$; $COIN(COIN)$; $DJT(DJT)$; $ET(ET)$; $MARA(MARA)$; $SMCI(SMCI)$; $TSLA(TSLA)$; $MSFT(MSFT)$; $UAL(UAL)$; $CORZ(CORZ)$
Top 10 bearish stocks: $ARLP(ARLP)$; $F(F)$; $SILV(SILV)$; $NXE(NXE)$; $AAPL(AAPL)$; $AVTE(AVTE)$; $DAL(DAL)$; $TLRY(TLRY)$; $BA(BA)$; $HIMS(HIMS)$
Source: Market Chameleon
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$(TSLA)$ $(COIN)$ $(PLTR)$ $(SMCI)$
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