U.S. stocks dropped on Friday as worsening inflation expectations kept intact worries that the Federal Reserve's aggressive rate hike path could trigger a recession, while investors digested the early stages of earnings season.

The Dow Jones Industrial Average fell 403.89 points, or 1.34%, to 29,634.83, the S&P 500 lost 86.84 points, or 2.37%, to 3,583.07 and the Nasdaq Composite dropped 327.76 points, or 3.08%, to 10,321.39.

Options Broad View

A total volume of 40,702,972 contracts were traded on Friday, down 15.26% from the previous day. Call options account for52% of total options trades.

There are 10.13 million SPDR S&P 500 ETF Trust options traded on Friday. Call options account for 44% in overall option trades. Particularly high volume was seen for the $360 strike put option expiring October 14, with 312,177 contracts trading on Friday.

Top 10 Option Volumes

Top 10: SPY, TSLA, QQQ, AAPL, AMZN, IWM, VIX, TQQQ, NVDA, AMD

Tesla Motors crashed 7.55% on Friday as Wells Fargo analysts cut their price target to $230 from $280. They expected a slight beat on earnings when Tesla reportsQ3 results but said they expect headwinds from the strong U.S. dollar to offset benefits from price increases. They also said higher interest rates may weigh on Tesla's long-term growth.

There are 3,180,000 option contracts traded on Friday, up 11.97% from the previous day. Call options account for 53% of overall option trades. Particularly high volume was seen for the $210 strike call option expiring October 14, with 182,838 contracts trading on Friday.

Source: Tiger Trade APP

Unusual Options Activity

Source: Market Chameleon

Semiconductor Bull 3X Shares tumbled 13.38% on Friday. Nvidia’s Independent Director, Mark Stevens, recently sold a substantial US$9.9m worth of stock at a price of US$116 per share, and AMD’sExecutive Vice President and Chief Sales Officer Grasby Paul Darren sold 10,400 shares on October 12 at an average price of $57.45 per share, valued at approximately $598,900.

There are 364,200 option contracts traded on Friday. Call options account for74% of overall option trades. Particularly high volume was seen for the $8 strike call option expiring October 21, with 53,664 contracts trading on Friday.

Wells Fargo rose 1.86% on Friday after posting its financial result. It posted earnings of 85 cents a share on $19.5 billion in revenue in its third quarter. Its net interest margin climbed 2.8% in Q3.

There are 176,100 option contracts traded on Friday. Call options account for 57% of overall option trades. Particularly high volume was seen for the $45 strike call option expiring October 14, with 7,265 contracts trading on Friday.

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: QQQ, SPY, SQQQ, UVXY, IWM, AAPL, PBR, SLV, VIXY, TSLA

Top 10 bearish stocks: TQQQ, IPOF, HYG, SOXL, FSR, AMC, BAC, FXI, EEM, MPC