Market Overview
All three major U.S. stock indexes scored record closing highs on Wednesday (Dec. 4) as technology shares rallied after upbeat results from Salesforce and as comments by Federal Reserve Chair Jerome Powell gave a late boost to the market.
The economy is stronger than it appeared in September when the central bank began cutting interest rates, allowing policymakers to potentially be a little more cautious in reducing rates further, Powell said at a New York Times event.
Regarding the options market, a total volume of 44,213,983 contracts was traded.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Amazon.com(AMZN)$, $Apple(AAPL)$, $Palantir(PLTR)$, $MicroStrategy(MSTR)$, $Super Micro Computer(SMCI)$, $Intel(INTC)$, $Microsoft(MSFT)$, $Meta(META)$
$Amazon.com(AMZN)$ stock rallied 2.2% Wednesday, a day after unveiling new AI-related initiatives, including a new chip aimed to take on $NVIDIA Corp(NVDA)$. But Nvidia stock also posted 3.5% gains, a sign investors are betting both tech giants can be winners in AI.
Amazon Web Services, the company's cloud-computing arm, announced that its Trainium2 AI chips are fully available, during its annual re:Invent conference Tuesday. The tech giant also touted a major customer for its chips: $Apple(AAPL)$ is using AWS and its chips to train its AI models.
There are 4.75 million $NVIDIA Corp(NVDA)$ option contracts traded on Wednesday. Call options account for 70% of overall option trades. Particularly high volume was seen for the $145 strike call option expiring Dec. 6, with 248,031 contracts trading. The $145 strike call option expiring this Friday surged nearly 282% on Wednesday. $NVDA 20241206 145.0 CALL$
There are 1.06 million $Amazon.com(AMZN)$ option contracts traded on Wednesday. Call options account for 75% of overall option trades. Particularly high volume was seen for the $220 strike call option expiring Dec. 6, with 108,645 contracts trading. The $220 strike call option expiring this Friday surged 224% on Wednesday. $AMZN 20241206 220.0 CALL$
Unusual Options Activity
$MicroStrategy(MSTR)$’s stock rose 9% on Wednesday.
On Wednesday night in New York, the dreams of crypto’s permabulls became reality: Bitcoin hit $100,000.
Spurring the moves: the digital-asset industry’s chest-thumping optimism that US President-elect Donald Trump would halt the tough government scrutiny that prevailed during his predecessor’s administration and instead pursue policies and regulators friendly to the digital-asset industry.
There are 571.29K $MicroStrategy(MSTR)$ option contracts traded on Wednesday. Call options account for 71% of overall option trades. Particularly high volume was seen for the $400 strike call option expiring Dec. 6, with 20,525 contracts trading. $MSTR 20241206 400.0 CALL$
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 1,889,254 shares of $MARA Holdings(MARA)$ stock. The largest bullish delta came from buying calls. The largest delta volume came from the 06-Dec-24 Call, with traders getting long 215,398 deltas on the single option contract.
Top 10 bullish stocks: $Nvidia(NVDA)$, $Mara Holdings(MARA)$, $Marvell Technology(MRVL)$, $Bluebird bio(BLUE)$, $Robinhood(HOOD)$, $Iris Energy(IREN)$, $Riot Platforms(RIOT)$, $MicroStrategy(MSTR)$, $SoFi Technologies(SOFI)$, $Coinbase(COIN)$
Top 10 bearish stocks: $Amazon.com(AMZN)$, $Palantir(PLTR)$, $Apple(AAPL)$, $Nebius(NBIS)$, $Alphabet(GOOGL)$, $Chevron(CVX)$, $Intel(INTC)$, $Broadcom(AVGO)$, $American Airlines(AAL)$, $Walmart(WMT)$
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$(NVDA)$ $(TSLA)$ $(AMZN)$ $(AAPL)$ $(PLTR)$ $(MSTR)$ $(SMCI)$ $(INTC)$ $(MSFT)$ $(META)$
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