Market Overview
The S&P 500 closed at an all-time high for a fifth straight session on Thursday(Jan 25) after data showing strong U.S. economic growth in the fourth quarter boosted sentiment, while Tesla tumbled following a disappointing sales forecast.
Regarding the options market, a total volume of 42,019,879 contracts was traded, down 6% from the previous trading day.
Top 10 Option Volumes
Top 10: SPY, TSLA, QQQ, NVDA, AMD, IWM, Apple ; Intel ; PayPal , AMZN
Tesla’s fourth-quarter adjusted earnings missed analysts’ estimates and the electric-vehicle maker warned that in 2024 its “vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas.” Tesla’s sales volumes rose by about 38% in 2023, while Wall Street currently projects growth of about 20% for 2024. The vague guidance from Tesla sent its stock down 12.1%.
There are 4.67M Tesla option contracts traded on Thursday, up 150% from the previous trading day. Call options account for 53% of overall option trades. Particularly high volume was seen for the $180 strike put option expiring January 26, with 202,055 contracts trading. While the $200 strike call option expiring January 26 also drew 74,747 contracts trading. $TSLA 20240126 200.0 CALL$
Unusual Options Activity
Intel on Thursday forecast revenue for the first quarter that could miss market estimates by more than $2 billion, as it grapples with uncertain demand for its chips used in the traditional server and personal computer markets. Shares of the Santa Clara, California-based company were down about 11% in after-hours trading.
There are 670.6K Intel option contracts traded on Thursday, up 163% from the previous trading day. Call options account for 68% of overall option trades. Particularly high volume was seen for the $53 strike call option expiring January 26, with 40,990 contracts trading. $INTC 20240126 53.0 CALL$
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: LUV, UAL, AMD, IBM, DAL, HPQ, BKR, ADBE, MTCH, CAH
Top 10 bearish stocks: TSLA, AAPL, PYPL, NVDA, AAL, C, MSFT, AMZN, BA
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