Market Overview
Wall Street's major indexes closed higher on Wednesday after the U.S. Federal Reserve kept interest rates unchanged.
The Dow Jones Industrial Average rose 0.67%, the S&P 500 gained 1.05%, and the Nasdaq Composite added 1.64%.
Regarding the options market, a total volume of 39,225,890 contracts was traded, up 19.06% from the previous trading day.
Top 10 Option Volumes
Top 10: SPDR S&P 500 ETF Trust, Invesco QQQ Trust-ETF, Tesla Motors, iShares Russell 2000 ETF, Advanced Micro Devices, NVIDIA Corp, Amazon.com, iShares 20+ Year Treasury Bond ETF, Cboe Volatility Index, Apple
Advanced Micro Devices soared 9.69% on Wednesday as sales of its AI chips could top $2 billion next year. However, revenue for the current quarter is expected to be $300 million below analysts' consensus estimates.
There were 1,287,271 Advanced Micro Devices option contracts traded on Wednesday, nearly doubling from the previous day. Call options account for 55.39% of overall option trades. Particularly high volume was seen for the $105 strike call option expiring November 3 $AMD 20231103 105.0 CALL$, with 50,963 contracts trading. Meanwhile, the $104 strike call option expiring November 3 $AMD 20231103 104.0 CALL$surged 190.85% on Wednesday.
Most Active Trading Equities Options
Special %Puts >70%: Zoom; Sirius XM; Morgan Stanley; Enphase Energy
Unusual Options Activity
XPeng Inc. gained 7.04% on Wednesday as its Smart EV monthly deliveries reached a record high of 20,002 units, representing a 31% increase over the prior month and a 292% increase year-over-year.
There were 38.13K XPeng Inc. option contracts traded on Wednesday, tripling from the previous day. Put options account for 51% of overall option trades. Particularly high volume was seen for the $15.5 strike put option expiring November 3 $XPEV 20231103 15.5 PUT$, with 3,706 contracts trading. Meanwhile, the $16.5 strike call option expiring November 3 $XPEV 20231103 16.5 CALL$ surged 350% on Wednesday.
AMC Entertainment fell 6.09% on Wednesday as its debt-to-equity and late payments could be financial warning signs, according to credit-monitoring and risk-management company Creditsafe.
There were 122.2K AMC Entertainment option contracts traded on Wednesday, tripling from the previous day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $11 strike call option expiring November 3 $AMC 20231103 11.0 CALL$, with 11,907 contracts trading. Meanwhile, the $11.5 strike call option expiring November 3 $AMC 20231103 11.5 CALL$ tumbled 78.95% on Wednesday.
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: Advanced Micro Devices, NVIDIA Corp, Meta Platforms, Inc., Amazon.com, Microsoft, Bristol-Myers Squibb, CVS Health, Bank of America, Apple, Warner Bros. Discovery
Top 10 bearish stocks: Tesla Motors, Ford, Pfizer, VF Corp, Kenvue Inc, AT&T Inc, Qualcomm, Intel , Altria, Expedia
Based on option delta volume, traders sold a net equivalent of -1,335,166 shares of Tesla Motors stock. The largest bearish delta came from selling calls. The largest delta volume came from the 03-Nov-23 210 Call $TSLA 20231103 210.0 CALL$, with traders getting short 1,030,434 deltas on the single option contract.
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