Market Overview
Wall Street ended sharply higher Monday(Nov 7) as investors focused on Tuesday's midterm elections that will determine control of Congress.
S&P 500 gained 0.96%, Nasdaq climbed 0.85%, and Dow gained 1.31%.
Regarding the options market, a total volume of 34,914,878 contracts was traded, down 33% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, QQQ, TSLA, AAPL, AMZN, META, FXI, IWM, PLTR, VIX
Options related to equity index ETFs are top choices for investors, with 6.58 million SPDR S&P500 ETF Trust and 2.24 million Invest QQQ Trust ETF options contracts trading Monday.
Total trading volume for SPY and QQQ down 35% and 38%, respectively, from the previous day. 55% of SPY trades bet on bearish options.
Palantir posted its slowest quarterly growth in revenue since going public in 2020 due to weak demand for its data analytics software in Europe, while a strong dollar weighed on its profit, sending its share down 11 per cent on Monday.
41% of Palantir's options bet on bearish one. Particularly high volume was seen for the $5 strike put option expiring Dec 23, with 40,905 contracts trading on Monday.
Unusual Options Activity
Chinese equities that trade on the Hong Kong Stock Exchange took off Monday, prompting total trading volume for iShares China to reach 820.3K.
The iShares China Large-Cap ETF seeks to track the investment results of an index composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange, including Alibaba, Meituan, Tencent and more.
Hot Chinese ADRs have rebounded a lot from the lowest point on Oct. 24 in recent two weeks. Education ADRs gained robust momentum, with TAL Education and New Oriental Education surging 90% and 70%, respectively.
There are 218,641 volume contracts trading on Monday, call options account for 70%. Particularly high volume was seen for the $30 strike call option expiring Nov 11, with 16,101 contracts trading 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: QQQ, INVZ, SLB, PHUN, XLI, VOD, MSFT, VERU, WBD, UVXY
Top 10 bearish stocks: CARG, AMZN, SOFI, FXI, META, ARKK, PDD, TSLA, PBR, LAZR
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