U.S. stocks ended higher on Monday (July 10th), with caution prevailing for much of the session ahead of Wednesday's consumer prices report and the start of second-quarter earnings later this week.
Regarding the options market, a total volume of 32,392,117 contracts was traded, down 16.7% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY; QQQ; Tesla; IWM; Apple; Rivian; Amazon; AMC; Meta; Nvidia
Meta Platforms stock closes 1.23% higher on Monday. Meta's new text-based social network Threads has eclipsed 100 million users in its first five days. The app is now among the most used social media platforms in the United States.
It has been a rocky several months for Twitter since Elon Musk bought the company, with a flurry of text-based alternatives attracting attention this year. Threads has drawn a particularly strong response from Twitter - shortly after Threads launched, Twitter threatened legal action against Meta.
A total number of 535.1K options related to Meta was traded, of which call options accounted for 70%. A particularly high trading volume was seen for the $300 strike call options expiring July 14, with a total number of 95,119 option contracts trading on Monday. $META 20230714 300.0 CALL$
Most Active Equity Options
Special %Calls >70%: Alibaba; Nio; Lucid;SoFi; Palantir; Meta
Unusual Options Activity
Nio stock jumped 7.9% on Monday. The shares have gained almost 40% over the past month boosted by a nice bounce for deliveries in June, which marked a turnaround after months of declining sales.
According to the latest data checks from Morgan Stanley analyst Tim Hsiao, considering the visits made to Nio’s stores in major Chinese cities last month, that is not all that surprising.
On the back of the official respective launches on May 24 and June 15 of new models of ES6 and ET5 touring, consumers have been heading to the stores to get an in-depth look at what’s on offer. The data shows that foot traffic in NIO’s flagship stores in tier 1 cities rose by ~10% month-over-month in June.
A total number of 383,244 options related to NIO was traded, of which call options accounted for 80%. A particularly high trading volume was seen for the $11 strike call options expiring July 14, with a total number of 73,991 option contracts trading on Monday. $NIO 20230714 11.0 CALL$
Fisker stock rose about 17% after the small electric vehicle maker announced a $340 million convertible bond offering. The offering could increase to $680 million.
Fisker is one of several small EV makers founded in the last decade, aiming to replicate the success of Tesla in making luxury electrics. Fisker’s plan is to deliver its product through Magna International (NYSE:MGA), a contract manufacturer that also works for Mercedes Benz, with a plant in Austria.
A total number of 535.1K options related to Fisker was traded, of which call options accounted for 79%. A particularly high trading volume was seen for the $6.5 strike call options expiring July 14, with a total number of 15,455 option contracts trading on Monday. $FSR 20230714 6.5 CALL$
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.
Top 10 bullish stocks: NKLA; HUT; MULN; CVNA; WBD; NIO; FSR; PLTR; MARA; INTC
Top 10 bearish stocks: AAPL; MSFT; META; LCID; SIRI; SOFI; DIS; RIVN; AMC; BAC
Based on option delta volume, traders sold a net equivalent of -2,599,430 shares of Apple stock. The largest bearish delta came from selling calls. The largest delta volume came from the 14-Jul-23 190 Call, with traders getting short 2,625,463 deltas on the single option contract. $AAPL 20230714 190.0 CALL$
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