Wall Street stumbled to a close Thursday (Dec 19), ending nearly flat after an earlier rally ran out of steam late in the session as investors continued to parse the Federal Reserve's hawkish outlook.
Regarding the options market, a total volume of 58,617,995 contracts was traded on Thursday.
Top 10 Option Volumes
Top 10: $TSLA(TSLA)$; $NVDA(NVDA)$; $VIX(VIX)$; $AMD(PLTR)$; $AAPL(AAPL)$; $AMD(AMD)$; $MU(MU)$; $MSTR(MSTR)$; $SOUN(SOUN)$; $AMZN(AMZN)$
Source: Tiger Trade App
$Micron Technology(MU)$ shares slid 16% on Thursday. Micron badly missed its outlook for the latest quarter, which could stoke fears about near-term dynamics in the memory market.
For the fiscal second quarter, Micron projected $7.90 billion in revenue at the midpoint, with $200 million in variability on each end. The FactSet consensus called for $8.94 billion.
Micron expects $1.33 to $1.53 in adjusted earnings per share for the fiscal second quarter, below the $1.91 consensus view. And Micron is calling for a 38.5% adjusted gross margin at the midpoint, down by one percentage point on a sequential basis.
A total number of 1.04 million options related to $Micron(MU)$ was traded, 4.8 time higher than the 90-day average trading volume. Market sentiment for Micron is quite bearish after recent decline. Based on option delta volume, traders sold a net equivalent of -1,837,376 shares of Micron stock. The largest bearish delta came from buying puts.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$SoundHound AI(SOUN)$, $C3.ai(AI)$ stocks plummeted around 10% each on Thursday, underperforming the broader market amid concerns over the Federal Reserve's projections and the company's lofty valuation.
The sell-off in AI stocks was triggered by the Federal Reserve's updated economic projections on Wednesday. The central bank signaled fewer interest rate cuts and higher inflation for 2025, dampening investor sentiment towards speculative and growth-oriented stocks.
A particularly high option volume related to $SoundHound AI(SOUN)$ was seen for the $20 strike put option expiring this Friday.
Quantum stocks cooled down on Thursday after consecutive surges. $Quantum Computing(QUBT)$ tumbled 44%; $Rigetti Computing(RGTI)$ sank 32%.
Based on option delta volume, traders sold a net equivalent of -1,249,238 shares of Quantum Computing stock. The largest bearish delta came from selling calls.
Source: Market Chameleon
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: $PLTR(PLTR)$; $PLTR(PLTR)$; $BA(BA)$; $MU(MU)$; $UBER(UBER)$; $SMCI(SMCI)$; $TPR(TPR)$; $IVZ(IVZ)$; $BAC(BAC)$; $VICI(VICI)$
Top 10 bearish stocks: $AMZN(AMZN)$; $AAPL(AAPL)$; $INTC(INTC)$; $GOOGL(GOOGL)$; $F(F)$; $MSFT(MSFT)$; $AMD(AMD)$; $PFE(PFE)$; $GOOG(GOOG)$; $WMT(WMT)$
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club
$(MU)$ $(AI)$ $(QUBT)$ $(SOUN)$ $(RGTI)$
Comments