Market Overview
Wall Street rallied on Monday(Oct.30), kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
The Dow Jones Industrial Average rose 1.58%, the S&P 500 gained 1.2%, and the Nasdaq Composite added 1.16%.
Regarding the options market, a total volume of 35,541,267 contracts was traded, down 18.22% from the previous trading day.
Top 10 Option Volumes
Top 10: SPDR S&P 500 ETF Trust, Invesco QQQ Trust, Tesla Motors, iShares Russell 2000 ETF, Amazon.com, NVIDIA Corp, Cboe Volatility Index, Apple, SoFi Technologies Inc., $iShares iBoxx High Yield Corporate Bond ETF
Tesla Motors fell 4.79% on Monday, its lowest close since May 26, as Japan’s Panasonic, a Tesla battery partner, cut down on its domestic battery production, citing slower sales to the company.
There were 2,438,872 Tesla Motors option contracts traded on Monday. Call options account for 51% of overall option trades. Particularly high volume was seen for the $200 strike put option expiring November 3 $TSLA 20231103 200.0 PUT$, with 94,849 contracts trading. Meanwhile, the $187.5 strike put option expiring November 3 $TSLA 20231103 187.5 PUT$ surged 121.35% on Monday.
Most Active Trading Equities Options
Special %Calls >70%: Marathon Digital Holdings Inc; SoFi Technologies Inc.; AMC Entertainment; Pfizer
Unusual Options Activity
SoFi Technologies Inc. rose 1.02% on Monday after it posted stronger-than-expected Q3 results and increased its 2023 guidance for revenue and EBITDA, as it continued to gain new customers and attract deposits.
There were 433,411 SoFi Technologies Inc. option contracts traded on Monday, jumping over 60% from the previous day. Call options account for 73% of overall option trades. Particularly high volume was seen for the $7.5 strike call option expiring November 3 $SOFI 20231103 7.5 CALL$, with 43,051 contracts trading. Meanwhile, the $8 strike call option expiring November 3 $SOFI 20231103 8.0 CALL$ crashed 87.5% on Monday.
AMC Entertainment gained 8.85% on Monday as "Taylor Swift: The Eras Tour" was expected to cross $200 million at the global box office on Sunday, according to Comscore data.
There were 145,404 AMC Entertainment option contracts traded on Monday. Call options account for 70.74% of overall option trades. Particularly high volume was seen for the $10 strike call option expiring November 3 $AMC 20231103 10.0 CALL$, with 22,038 contracts trading. Meanwhile, the $10.5 strike call option expiring November 3 $AMC 20231103 10.5 CALL$ surged 170% on Monday.
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: Amazon.com, Microsoft, Pfizer, NVIDIA Corp, Alphabet, First Solar, PayPal, ON Semiconductor, Intel, JPMorgan Chase
Top 10 bearish stocks: Meta Platforms, Inc., Tesla Motors, Kenvue Inc, General Motors, American Airlines, AES Corp, AT&T Inc, McDonald's, Wells Fargo, Ford
Based on option delta volume, traders sold a net equivalent of 971,314 shares of Meta Platforms, Inc. stock. The largest bearish delta came from selling calls. The largest delta volume came from the 16-Feb-24 250 Call, with traders getting short 840,952 deltas on the single option contract.
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