To The Moon

The S&P 500 and Nasdaq reached their highest closes in 14 months on Tuesday (June 13th) after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates on Wednesday.

Regarding the options market, a total volume of 43,195,998 contracts was traded, up 12% from the previous trading day.

Top 10 Option Volumes

Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $Tesla(TSLA)$; $Nvidia(NVDA)$; $AMD(AMD)$; $IWM(IWM)$; $VIX(VIX)$; $Apple(AAPL)$; $Amazon(AMZN)$; $SoFi(SOFI)$

Source: Tiger Trade APP

$Nvidia Corp.(NVDA)$ officially joined vaunted company Tuesday, becoming just the seventh public U.S. company to finish a trading session in $1 trillion territory.

The chip giant accomplished something it had failed to do late last month as it officially closed with a market capitalization above $1 trillion. Nvidia shares previously flirted with intraday levels that would have equated to a $1 trillion valuation but failed to finish a trading session above the mark.

Nvidia's stock gained 3.9% in Tuesday trading to finish with a market cap of $1.01 trillion. The market-cap milestone comes amid a stunning year-to-date rise for Nvidia shares, which are up 181% over that span amid optimism about the company's ability to benefit from a growing rush among companies to train and deploy artificial intelligence.

Source: Market Chameleon

A total number of 1.31 million options related to $Nvidia(NVDA)$ was traded, up 129.5% from the previous trading day. A particularly high trading volume was seen for the $420 strike call options expiring June 16, with a total number of 101,817 option contracts trading on Tuesday.

Most Active Options

1. Most Active Trading Equities Options:

Special %Calls >70%: $Altria(MO)$; $Rivian(RIVN)$; $Alibaba(BABA)$; $GameStop(GME)$; $Ford(F)$; $NIO(NIO)$; $Carnival(CCL)$; $Palantir(PLTR)$; $Intel(INTC)$; $C3.ai(AI)$

Data From CBOE Trader Alert, as of 14 June 2023 EDT

2. Most Active Trading ETFs Options

Special % Calls >70%: $iShares MSCI Japan ETF(EWJ)$; $Nasdaq 100 Bear 3X ETF(SQQQ)$; $S&P Biotech Bull 3X Shares(LABU)$; $VIX Short-Term Futures 1.5X ETF(UVXY)$

Data From CBOE Trader Alert, as of 14 June 2023 EDT

$iShares MSCI Japan ETF(EWJ)$ shows nearly 97% call options. The fund aims to provide investors with the performance of the MSCI Japan Index. The index is designed to measure the performance of Japanese large-, mid- & small- capitalisation companies.

Investor interest in Japanese equities is at its highest in several decades, thanks to improving economic fundamentals. In spite of already high valuations, many analysts continue to see upside for the country’s stock market.

Foreigners put a net US$31.8 billion into Japanese equities in the year to Jun 2. This is the highest – on a cumulative year-to-date basis – since 2013.

The Nikkei 225, Japan’s benchmark index, hit a 33-year high of 33,018.65 points on Jun 13.

Special %Puts >80%: $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$

Data From CBOE Trader Alert, as of 14 June 2023 EDT

Unusual Options Activity

Source: Market Chameleon

On Tuesday, AMD unveiled its most advanced chip yet targeted toward red-hot generative AI technology. Dubbed the MI300x, it can use up to 192GB of memory. The beefy memory capabilities mean AMD's new chip could be applied to AI large language models, commonly known as "LLMs."

AMD stock fell 3% on Tuesday following the product release news despite the clear promise of the technology.

"AMD appears to have a large design win for its MI300 chip, however, we question the sustainability of a combined graphics/CPU IC given performance limitations and an unsuccessful history," Citi chip analyst Chris Danely pointed out in a new client note.

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: $AMC(AMC)$; $MO(MO)$; $NVDA(NVDA)$; $NKLA(NKLA)$; $AI(AI)$; $BYND(BYND)$; $NKE(NKE)$; $GME(GME)$; $GM(GM)$; $DVN(DVN)$

Top 10 bearish stocks: $AAPL(AAPL)$; $SOFI(SOFI)$; MPW(MPW)$; $INTC(INTC)$; $AMD(AMD)$; $BAC(BAC)$; $RIVN(RIVN)$; $FYBR(FYBR)$; $F(F)$; $AAL(AAL)$

Source: Market Chameleon

Source: Market Chameleon

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