Market Overview
U.S. stocks closed slightly higher on Thursday as data showing a fall in consumer prices in December bolstered expectations of less aggressive interest rate hikes from the Federal Reserve.
The Dow Jones Industrial Average rose 0.64%, the S&P 500 gained 0.34%, and the Nasdaq Composite added 0.64%.
Regarding the options market, a total volume of 47,271,927 contracts was traded on Thursday, up 3.15% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, AMZN, AAPL, BBBY, IWM, EEM, VIX, NVDA
There were 9.77 million SPDR S&P 500 ETF Trust and 3.31 million Invesco QQQ Trust options contracts trading on Thursday. SPDR S&P 500 ETF Trust’s trading volumes jumped 14.14% while Invesco QQQ Trust’s volume rose 6.09% from the previous day separately. 56% of SPDR S&P 500 ETF Trust trades bet on bearish options.
Taiwan Semiconductor Manufacturing rose 6.38% on Thursday. It posted a 78% rise in fourth-quarter net profit on Thursday, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips.
There were 233,500 Taiwan Semiconductor Manufacturing options trading on Thursday, surging over 30% from the previous day. Call options account for 59% of overall option trades. Particularly high volume was seen for the $87 strike call option expiring January 13, with 11,678 contracts trading on Thursday.
Unusual Options Activity
American Airlines jumped 9.71% on Thursday as it expected adjusted earnings per share of $1.12 to $1.17, up from a previous estimate of $0.50 to $0.70, revenue may have a 16% to 17% increase on 2019 levels.
There were 498,200 American Airlines options trading on Thursday, surging nearly 200% from the previous day. Put options account for 58% of overall option trades. Particularly high volume was seen for the $16.5 strike call option expiring January 13, with 29,365 contracts trading on Thursday.
Marathon Digital Holdings Inc surged 30.91% on Thursday as FTX has recovered more than $5 billion in different assets, not including another $425 million in crypto held by the Securities Commission of the Bahamas.
There were 349,300 Marathon Digital Holdings Inc options trading on Thursday. Call options account for 75% of overall option trades. Particularly high volume was seen for the $6 strike call option expiring January 13, with 32,528 contracts trading on Thursday.
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: WFC, META, MU, OXY, C, F, BA, UAL, CCL, AAL
Top 10 bearish stocks: AMZN, TSLA, AAPL, AMD, GOOGL, ABBV, TRGP, GOOG, ORCL, MSFT
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