U.S. stocks rose sharply on Wednesday (May 17th), fueled by optimism over a potential deal on the $31.4 trillion federal debt ceiling and as a rebound in regional bank shares eased concerns about an escalation in the sector's troubles.
Regarding the options market, a total volume of 41,591,813 contracts was traded, up 26% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $Tesla(TSLA)$; $IWM(IWM)$; $Amazon(AMZN)$; $Apple(AAPL)$; $NVIDIA(NVDA)$; $VIX(VIX)$; $AMD(AMD)$; $HYG(HYG)$
Source: Tiger Trade APP
$Tesla(TSLA)$ shares closed 4.4% higher to $173.86 on Wednesday. Tesla CEO Elon Musk told shareholders at the electric-vehicle maker’s annual meeting the company would try running some advertisements. Musk had said in the past that Tesla didn’t need to advertise as demand always exceeded supply. Musk also said he planned to remain as the company’s chief executive, and teased two new Tesla models.
In addition, Tesla Inc has proposed setting up a factory in India to build electric cars for domestic sale and export, the carmaker told government officials on Wednesday, according to a source with direct knowledge of the matter.
A total number of 2.39 million options related to $Tesla(TSLA)$ was traded, up 81% from the previous trading day. Particularly high trading volumes are seen for the $175 and $180 strike call options expiring this Friday, with a total number of 218,580 and 131,801 option contracts trading on Wednesday, implying up to 3% increase as of this Friday.
Source: Market Chameleon
Most Active Options
1. Most Active Trading Equities Options:
Special %Calls >70%: $Carnival(CCL)$; $Alibaba(BABA)$; $Palantir(PLTR)$
Data From CBOE Trader Alert, as of 17 May 2023 EDT
2. Most Active Trading ETFs Options
Special %Calls >70%: $Nasdaq 100 Bear 3X ETF(SQQQ)$; $VIX Short-Term Futures 1.5X ETF(UVXY)$; $VanEck Gold Miners ETF(GDX)$
Data From CBOE Trader Alert, as of 17 May 2023 EDT
Special %Puts >70%: $iShares MSCI Canada ETF(EWC)$; $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$; $Energy Select Sector SPDR Fund(XLE)$
Data From CBOE Trader Alert, as of 17 May 2023 EDT
Unusual Options Activity
Source: Market Chameleon
$Palantir Technologies(PLTR)$ rose 8.24% to $10.25 on Wednesday amid optimism that lawmakers in Washington would reach a deal to raise the U.S.'s debt ceiling.
Earlier this month, the data software company reported first-quarter results and guidance that topped expectations. During the period, $Palantir (PLTR)$ generated $236M in commercial revenue, including $107M from U.S. commercial revenue. Government-related revenue rose 20% year-over-year to $289M, including $230M from the U.S. federal government.
A total number of 133,907 options related to Palantir was traded, of which call options accounted for 75%.
Source: Market Chameleon
Following the strong results, however, some Wall Street analysts expressed caution for Palantir. Citi analyst Tyler Radke, who has a sell rating and a per-share price target of $5 on Palantir, noted the revenue outperformance in the first-quarter was driven by special purpose acquisition companies that went out of business and the revenue was pre-paid and pulled forward as a result of the bankruptcies.
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: $ABBV(ABBV)$; $ENPH(ENPH)$; $AMGN(AMGN)$; $COP(COP)$; $XOM(XOM)$; $AMC(AMC)$; $TXN(TXN)$; $QCOM(QCOM)$; $CCL(CCL)$; $C(C)$
Top 10 bearish stocks: $AAPL(AAPL)$; $SNAP(SNAP)$; $ABR(ABR)$; $TSLA(TSLA)$; $AMZN(AMZN)$; $AMD(AMD)$; $PLTR(PLTR)$; $SOFI(SOFI)$; $SHOP(SHOP)$; $SQ(SQ)$
Source: Market Chameleon
Source: Market Chameleon
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