Market Overview
U.S. stocks pared losses late on Wednesday, as problems at Credit Suisse revived fears of a banking crisis, eclipsing bets on a smaller U.S. rate hike this month.
The Dow Jones Industrial Average fell 0.87%, the S&P 500 lost 0.70%, and the Nasdaq Composite added 0.05%.
Regarding the options market, a total volume of 49,660,227 contracts was traded on Wednesday, up 20.68% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, IWM, TSLA, VIX, HYG, AMZN, AAPL, CS, NVDA
Options related to equity index ETFs are popular with investors, with 10.78 million $SPDR S&P 500 ETF Trust(SPY)$ and 3.74 million $Invesco QQQ Trust(QQQ)$ options contracts trading on Tuesday.
Total trading volume for $SPDR S&P 500 ETF Trust(SPY)$ and $Invesco QQQ Trust(QQQ)$ rose 1.99% and 20.65% from the previous day. 59% of $SPDR S&P 500 ETF Trust(SPY)$ trades bet on bearish options.
$Credit Suisse Group AG(CS)$ crashed 13.94% on Wednesday, the latest news is that it was taking "decisive action" to strengthen its liquidity by borrowing up to $54 billion from the Swiss central bank after a slump in its shares intensified fears about a broader bank deposit crisis.
There were 836,588 $Credit Suisse Group AG(CS)$ option contracts traded on Wednesday, surging nearly 1000% from the previous day. Put options account for 59% of overall option trades. Particularly high volume was seen for the $1 strike put option expiring Mar 17, with 56,336 contracts trading.
$Cboe Volatility Index(VIX)$ rose 10.16% on Wednesday as the cost to insure $Credit Suisse Group AG(CS)$ from default rose to distressed levels.
There were 1,646,451 $Cboe Volatility Index(VIX)$ option contracts traded on Wednesday, rising 50% from the previous day. Call options account for 69% of overall option trades.
Source: Tiger Trade App
Most Active Options
1. Most Active Trading Equities Options:
Special %Calls >60%: $Meta Platforms, Inc.(META)$; $Alphabet(GOOG)$; $Charles Schwab(SCHW)$
Special %Puts >60%: $Alibaba(BABA)$; $American Airlines(AAL)$
Data From CBOE Trader Alert, as of 16 Mar 2023 EDT
2. Most Active Trading ETFs Options
Special %Calls >70%: $SPDR Gold Shares(GLD)$; $iShares Silver Trust(SLV)$; $VanEck Gold Miners ETF(GDX)$; $Nasdaq100 Bear 3X ETF(SQQQ)$
Special %Puts >70%: $iShares Russell 2000 ETF(IWM)$; $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$; $Energy Select Sector SPDR Fund(XLE)$; $iShares MSCI Emerging Markets ETF(EEM)$; $iShares MSCI Brazil ETF(EWZ)$; $iShares MSCI EAFE ETF(EFA)$; $ARK Innovation ETF(ARKK)$; $Spdr S&P Oil & Gas Exploration & Production Etf(XOP)$
Data From CBOE Trader Alert, as of 16 Mar 2023 EDT
3. Top 10 Most Active Trading Indexes options
Special %Calls >70%: $Nanos Standard & Poor's 500(NANOS)
Special %Puts >70%: MXEF; NQX
Data From CBOE Trader Alert, as of 16 Mar 2023 EDT
Unusual Options Activity
Source: Market Chameleon
$Energy Select Sector SPDR Fund(XLE)$ fell 5.37% on Wednesday as oil prices plunged by nearly 5% to settle at the lowest levels in more than a year on concerns that a crisis of confidence in the banking sector could trigger a recession and cut demand.
There were 525,448 $Energy Select Sector SPDR Fund(XLE)$ option contracts traded on Wednesday. Put options account for 82% of overall option trades. Particularly high volume was seen for the $78 strike put option expiring Mar 17, with 24,644 contracts trading.
TOP Bullish & Bearish Single Stocks
This report shows stocks with the highest volume of bullish and bearish activity by option delta volume, which converts option volume to an equivalent stock volume (bought or sold).
If we take the total positive option delta volume and subtract the total negative option delta volume, we will get the net imbalance. If the net imbalance is positive, there is more bullish pressure. If the net is negative, there is more bearish pressure.
Top 10 bullish stocks: NFLX, AMZN, CVS, CAT, PFE, AAL, JNJ, F, DIS, UNH
Top 10 bearish stocks: TSLA, AAPL, ETSY, MET, BA, XOM, CHTR, BAC, FRC, EBAY
Source: Market Chameleon
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$(CS)$ $(VIX)$ $(XLE)$
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