Market Overview
U.S. stocks ended sharply higher on Thursday(Apr.13) as economic data showed cooling inflation and a loosening labor market, fueling optimism that the Federal Reserve could be nearing the end of its aggressive interest rate hike cycle.
The Dow Jones Industrial Average rose 1.14%, the S&P 500 gained 1.33%, and the Nasdaq Composite added 1.99%.
Regarding the options market, a total volume of 34,743,807 contracts was traded on Thursday, down 3.53% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, AAPL, AMZN, VIX, NVDA, IWM, META, NKLA
Options related to equity index ETFs are popular with investors, with 8.13 million SPDR S&P 500 ETF Trust and 2.81 million Invesco QQQ Trust options contracts trading on Thursday.
Total trading volume for SPDR S&P 500 ETF Trust and Invesco QQQ Trust slid 7.51% and 12.19% separately from the previous day. 57% of SPDR S&P 500 ETF Trust trades bet on bearish options.
Amazon.com rose 4.67% on Thursday as its cloud computing division released a suite of technologies aimed at helping other companies develop their own chatbots and image-generation services backed by artificial intelligence.
There were 1.03 million Amazon.com option contracts traded on Thursday, jumping nearly 20% from the previous day. Call options account for 59% of overall option trades. Particularly high volume was seen for the $102 strike call option expiring Apr 14, with 69,854 contracts trading.
Most Active Options
1. Most Active Trading Equities Options:
Special %Calls >70%: Nikola Corporation; Alphabet
2. Most Active Trading ETFs Options
Special %Calls >70%: Financial Select Sector SPDR Fund; iShares Silver Trust; VanEck Gold Miners ETF; ARK Innovation ETF; Nasdaq100 Bear 3X ETF; VIX Short-Term Futures 1.5X ETF; Spdr S&P Biotech Etf; S&P Biotech Bull 3X Shares
Special %Puts >70%: iShares Russell 2000 ETF; $iShares iBoxx High Yield Corporate Bond ETF;
Unusual Options Activity
Nasdaq100 Bear 3X ETF crashed 5.65% as the Nasdaq Composite rose 1.99%, US inflation at the wholesale level continued its downward slide in March with annualized price increases sinking dramatically to 2.7% from an upwardly revised 4.9%.
There were 203,078 Nasdaq100 Bear 3X ETF option contracts traded on Thursday, call options account for 83% of overall option trades. Particularly high volume was seen for the $31 strike call option expiring Apr 14, with 17,345 contracts trading.
Nikola Corporation fell 2.38% on Thursday as three board members were retiring from its board of directors at its annual meeting on June 7.
There were 428,100 Nikola Corporation option contracts traded on Thursday, nearly doubling from the previous day. Call options account for 74% of overall option trades. Particularly high volume was seen for the $1 strike put option expiring May 19, with 50,343 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: Apple, Citigroup, DISH Network, NVIDIA Corp, Netflix, Intel, Wells Fargo, Micron Technology, Alphabet, CVS Health
Top 10 bearish stocks: American Airlines, Delta Air Lines, Advanced Micro Devices, Charles Schwab, Tesla Motors, Carnival, Amazon.com, Pfizer, First Republic Bank, Walt Disney
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