Market Overview
U.S. stocks ended lower on Thursday (May 23), even as a strong revenue forecast for Nvidia fueled a surge in its shares, but that was overshadowed by economic data showing inflation was still a concern that could delay any Federal Reserve rate cuts.
Regarding the options market, a total volume of 45,396,302 contracts was traded, up 32% from the previous trading day.
Top 10 Option Volumes
Top 10: NVDA, TSLA, AMD, AAPL, AMZN, AMC, BABA, INTC, TSM, META
Source: Tiger Trade App
Nvidia shares jumped 9.3% to close above the $1,000 per share mark for the first time and helped boost the Nasdaq and S&P 500 to intraday records in the early stages of trading after the AI chip company forecast quarterly revenue above estimates and announced a stock split.
There are 2.95 million Nvidia option contracts traded on Thursday, up 171% from the previous trading day. Call options account for 57% of overall option trades. Particularly high volume was seen for the $1050 strike call option expiring May 24, with 130,365 contracts trading. NVDA 20240524 1050.0 CALL
Alibaba sold $4.5 billion worth of convertible bonds in one of the largest such offerings in recent years, as the company looks to buyback more shares and invest in its businesses. The shares dropped 2.3% on Thursday.
There are 374.6K Alibaba option contracts traded on Thursday, up 50% from the previous trading day. Call options account for 72% of overall option trades. Particularly high volume was seen for the $90 strike call option expiring June 21, with 34,230 contracts trading. BABA 20240621 90.0 CALL
Unusual Options Activity
Source: Market Chameleon
Silver price tumbled more than 2% on Thursday as economic data from the United States showed that business activity is faring well amid a high interest rates economy. iShares Silver Trust (SLV) dropped 2.4%.
There are 702.2K SLV option contracts traded on Thursday, down 4% from the previous trading day. Call options account for 84% of overall option trades. Particularly high volume was seen for the $30 strike call option expiring July 19, with 108,596 contracts trading. SLV 20240719 30.0 CALL
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.
Based on option delta volume, traders sold a net equivalent of -5,186,733 shares of Magna stock. The largest bearish delta came from buying puts. The largest delta volume came from the 21-Jun-24 47.5 Put, with traders getting short 5,192,766 deltas on the single option contract. MGA 20240621 47.5 PUT
Top 10 bullish stocks: NVDA, FFIE, BNED, KVUE, SEAT, C, WBD, BMBL, AMC, DELL
Source: Market Chameleon
Top 10 bearish stocks: MGA, AAPL, GME, AMZN, PLTR, AMD, FCX, TSLA, BA; NIO
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