Market Overview
The Nasdaq and the S&P 500 rose to record closing highs on Friday (Dec. 6) following upbeat forecasts from Lululemon Athletica and other companies and as U.S. jobs data fueled expectations the Federal Reserve would cut interest rates this month.
Regarding the options market, a total volume of 50,718,814 contracts was traded, up 7% from the previous trading day.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$, $TSLA(TSLA)$, $PLTR(PLTR)$, $AMZN(AMZN)$, $SMCI(SMCI)$, $AMD(AMD)$, $AAPL(AAPL)$, $MSTR(MSTR)$, $META(META)$, $SOUN(SOUN)$
Source: Tiger Trade App
$Tesla(TSLA)$ shares closed 5.3% higher to $389.22 per share on Friday — its highest closing level since Jan. 3, 2022, when shares ended at $399.93, according to Dow Jones Market Data. The company’s market capitalization has once again surpassed the $1.2 trillion threshold, closing at $1.249 trillion on Friday to break the previous record of $1.235 trillion, also set on Nov. 4, 2021.
BofA analyst John Murphy reiterated his buy rating on the stock in a Thursday note to clients, raising his price target to $400 from $350.
There are 3.21 million Tesla option contracts traded on Friday, up 7% from the previous trading day. Call options account for 66% of overall option trades. Particularly high volume was seen for the $380 strike call option expiring December 6, with 296,399 contracts trading.
Shares of $SoundHound AI(SOUN)$ jumped another 12.6% on Friday, bringing its weekly gain to 61.2%. The Nvidia-backed voice AI operation announced a deal with Torchy's Tacos — the maker of "damn good tacos" — to use its technology at all 130 of the restaurant's locations.
There are 562.01K SoundHound AI option contracts traded on Friday, up 11% from the previous trading day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $15 strike call option expiring December 6, with 37,756 contracts trading.
Unusual Options Activity
Source: Market Chameleon
$Palantir(PLTR)$ stock jumped another 6.2% on Friday, bringing its weekly gain to 13.8%. The software company said it had secured authorization for its entire product suite to be used in processing sensitive federal workloads. Also on the horizon is Palantir’s potential addition to the Nasdaq 100 index on Friday, Dec. 13.
There are 1.38 million Palantir option contracts traded on Friday, up 104% from the previous trading day. Call options account for 61% of overall option trades. Particularly high volume was seen for the $77 strike call option expiring December 6, with 73,777 contracts trading.
Top 10 S&P 500 Bullish & Bearish
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: $TSLA(TSLA)$, $SMCI(SMCI)$, $AAPL(AAPL)$, $PLTR(PLTR)$, $C(C)$, $AVGO(AVGO)$, $CME(CME)$, $LULU(LULU)$, $KMI(KMI)$, $ORCL(ORCL)$
Top 10 bearish stocks: $NVDA(NVDA)$, $AMZN(AMZN)$, $AMD(AMD)$, $MSFT(MSFT)$, $META(META)$, $HPE(HPE)$, $PFE(PFE)$, $UBER(UBER)$, $INTC(INTC)$; $CMCSA(CMCSA)$
Source: Market Chameleon
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