The Dow notched a record high close on Thursday (Aug 29) in mixed trading following robust U.S. economic data, while artificial intelligence chipmaker Nvidia dropped after its largely in-line forecast failed to impress investors.
Regarding the options market, a total volume of 43,242,038 contracts was traded on Thursday.
Top 10 Option Volumes
Top 10: NVDA; TSLA; AAPL; INTC; SOFI; AMD; PDD; AFRM; SMCI; AMZN
Source: Tiger Trade App
Intel shares rose 4% in overnight trading. Intel is working with investment bankers to help navigate the most difficult period in its 56-year history, according to people familiar with the matter.
As for the option trade volume, Intel stock showed the highest bullish indicators with 7,995,022 net option delta volume.
Source: Market Chameleon
Morgan Stanley and Goldman Sachs Group Inc., Intel’s longtime bankers, have been providing advice on the possibilities, which could also include potential M&A, the people said. The discussions have only grown more urgent since the Santa Clara, California-based company delivered a grim earnings report, which sent the shares plunging to their lowest level since 2013.
Based on option delta volume, traders bought a net equivalent of 7,995,022 shares of Intel stock. The largest bullish delta came from selling puts.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
Affirm shares jumped 32% on Thursday, after the provider of buy now, pay later loans reported better-than-expected fiscal fourth-quarter results.
Affirm reported gross merchandise volume, or GMV, of $7.2 billion, up 31% from a year earlier. GMV is a key industry metric that helps gauge the total value of transactions over the reporting window.
Revenue climbed 48% from a year earlier, and Affirm's net loss narrowed to $45.1 million from $206 million in the same period a year ago. The company's active merchant count hit more than 300,000 and active consumers also grew 19% to 18.6 million.
A total number of 629,824 options related to Affirm shares was traded, 8 times higher than the 90-day average trading volume. A particularly high trading volume was seen for the $50 strike call option expiring Sept 20, with a total number of 17,853 options contracts trading on Thursday.
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: INTC; AFRM; PDD; GME; SOFI; MAXN; MPW; GSAT; SNOW; EOSE
Top 10 bearish stocks: NVDA; TSLA; NEE; AMZN; AAPL; ABNB; WBA; CCL; GOLD; DXCM
Source: Market Chameleon
Based on option delta volume, traders sold a net equivalent of -8,278,976 shares of Nvidia stock. The largest bearish delta came from selling calls.
The largest delta volume came from the 20-Sep-24 105 Call, with traders getting short 4,379,111 deltas on the single option contract.