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Option Movers | Traders Bet on a 11% Swing in Nvidia Stock, These Two Options Contracts Worth Attention

Option Movers2023-08-23

The Dow and S&P 500 ended slightly lower on Tuesday (August 22nd) as investors stayed worried the Federal Reserve will keep interest rates higher for longer and as banks shares eased. The Nasdaq finished barely in the green.

Regarding the options market, a total volume of 33,430,959 contracts was traded, down 8% from the previous trading day.

Top 10 Option Volumes

Top 10: SPY; QQQ; TSLA; AMC; NVDA; AAPL; IWM; VIX; JNJ; KVUE

Source: Tiger Trade App

Investors are wagering that the furious swing in Nvidia shares after Wednesday’s earnings report. Among Nvidia's contracts expiring this week, the largest open interest comes from $500 strike Call options with a total amount of 19,122 as of Tuesday.

$NVDA 20230825 500.0 CALL$

Source: Market ChameleonSource: Market Chameleon

Traders are betting on a swing in the stock of about 11%—up or down—through the end of the week, options pricing shows. And that is well above the average move of about 7% seen after the last eight earnings releases. The robust activity suggests some traders are fearful of missing out on further gains in Nvidia, while others are likely eager to take advantage of the big one-day moves in its shares. Nvidia’s $400 strike put options expiring August 25 also worth attention with a total number of 16,386 open interest as of Tuesday.

$NVDA 20230825 400.0 PUT$

Recent estimates from industry watchers indicate that Tesla’s China unit is in position to report impressive August numbers, with estimates showing the car maker receiving 13,900 insurance registrations in the week ending August 20.

It seems that the company has achieved approximately 39,400 new insurance registrations in China within this month. This figure indicates a positive outlook for Tesla, particularly given the anticipated emphasis on the domestic market by Giga Shanghai in the upcoming weeks.

Shares of TSLA are up 0.83%. A total number of 2.15 million options related to Tesla was traded. A particularly high trading volume was seen for the $240 strike call options expiring August 25th, with a total number of 153,219 option contracts trading on Tuesday.

$TSLA 20230825 240.0 CALL$

Source: Market ChameleonSource: Market Chameleon

Most Active Options

Most Active Trading Equities Options:

Special %Calls>70%: Palantir; PayPal; Macy's

Data From CBOE Trader Alert, as of 22 August 2023 EDTData From CBOE Trader Alert, as of 22 August 2023 EDT

Unusual Options Activity

Source: Market ChameleonSource: Market Chameleon

AMC Entertainment and AMC Preferred Equity units are both slipping for a second straight day on the threshold of a transformative share conversion the theater chain launched in order to raise new equity.

AMC's common shares were down 18.27% on Tuesday amid three separate trading halts for volatility. The stock had tumbled 24% Monday. Meanwhile, the company's preferred equity units (APE) were down 11.32% on Tuesday, adding on to Monday's 7% decline.

While both securities are declining, the price gap between them is narrowing ahead of AMC's planned major moves this week: a 1-for-10 reverse stock split to come on Thursday, and the conversion of APEs into AMC common stock on Friday.

A total number of 1,141,623 options related to AMC was traded. A particularly high trading volume was seen for the $4 strike put options expiring August 25, with a total number of 70,797 option contracts trading on Tuesday.

$AMC 20230825 4.0 PUT$

Source: Market ChameleonSource: Market Chameleon

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: M; AAPL; AGNC; KIM; VFC; GOEV; TAL; JWN; PTON; VLY

Top 10 bearish stocks: AMC; TSLA; PLTR; NKLA; PFE; PYPL; PBR; KMI; BAC

Based on option delta volume, traders bought a net equivalent of 1,249,965 shares of Macy's stock. The largest bullish delta came from buying calls.

The largest delta volume came from the 15-Sep-23 13.5 Call, with traders getting long 541,619 deltas on the single option contract. $M 20230915 13.0 CALL$

Source: Market ChameleonSource: Market Chameleon

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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