To The Moon

Market Overview

Wall Street closed lower on Friday (August 4) after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple.

Regarding the options market, a total volume of 48,986,025 contracts was traded, up 25% from the previous trading day.

Top 10 Option Volumes

Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $AMZN(AMZN)$; $AAPL(AAPL)$; $TSLA(TSLA)$; $NVDA(NVDA)$; $AMD(AMD)$; $IWM(IWM)$; $NKLA(NKLA)$; $VIX(VIX)$

Source: Tiger Trade App

Options related to equity index ETFs are still popular with investors, with 9.61 million $SPDR S&P500 ETF Trust(SPY)$ (SPY) and 3.92 million $Invest QQQ Trust ETF(QQQ)$ (QQQ) options contracts trading on Friday.

$Amazon.com(AMZN)$ reported sales growth and profit that beat Wall Street's expectations as the company delivered goods faster and more cheaply to shoppers while recent cloud-computing headwinds began to subside. Its shares jumped 8.3% on Friday after the online retailer issued an upbeat third-quarter outlook.

There are 2.76 million Amazon option contracts traded on Friday, up 103% from the previous trading day. Call options account for 65% of overall option trades. Particularly high volume was seen for the $142 strike call option expiring August 4, with 110,235 contracts trading. AMZN 20230804 142.0 CALL

Source: Market Chameleon

$Apple(AAPL)$ shares fell 4.8% Friday, the day after the company shared its fiscal third-quarter earnings report that saw the company forecast a decline in revenue in the September quarter, which would be the company’s fourth in a row. Apple’s decline Friday was its worst day so far in 2023, and its largest loss since Sept. 29 last year. The stock is up 40% so far this year.

There are 2.71 million Apple option contracts traded on Friday, up 99% from the previous trading day. Call options account for 59% of overall option trades. Particularly high volume was seen for the $187.5 strike call option expiring August 4, with 129,896 contracts trading. AAPL 20230804 187.5 CALL

Source: Market Chameleon

Most Active Equity Options

Special %Calls >70%: $NIO Inc.(NIO)$

Data From CBOE Trader Alert, as of 4 August 2023 EDT

Unusual Options Activity

Source: Market Chameleon

$Nikola Corporation(NKLA)$ lost more than a quarter of its market value on Friday after the U.S. electric truck maker named its fourth CEO in as many years and reiterated for the third time this year its doubts about continuing as a going concern.

There are 748.6K Nikola option contracts traded on Friday, approximately 4.8 times the 90-day average trading volume. Call options account for 52% of overall option trades. Particularly high volume was seen for the $4.5 strike call option expiring August 11, with 74,829 contracts trading. NKLA 20230811 4.5 CALL

Source: Market Chameleon

Shares of $Tupperware(TUP)$, known for its plastic airtight storage containers and bowls, rallied 35.5% after the company finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around the business.

There are 245.5K Tupperware option contracts traded on Friday, approximately 22.3 times the 90-day average trading volume. Call options account for 50% of overall option trades. Particularly high volume was seen for the $1 strike put option expiring September 15, with 35,892 contracts trading. TUP 20230915 1.0 PUT

Source: Market Chameleon

TOP 10 Bullish & Bearish S&P 500

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.

Based on $Tesla Motors(TSLA)$ option delta volume, traders sold a net equivalent of -4,014,496 shares of stock. The largest bearish delta came from selling calls, suggesting that the stock may decline. The largest bearish delta came from selling calls. The largest delta volume came from the 04-Aug-23 260 Call, with traders getting short 6,065,032 deltas on the single option contract. TSLA 20230804 260.0 CALL

Top 10 bullish stocks: $NCLH(KMI)$, $AMD(WBD)$, $NVDA(NVDA)$, $BSX(BSX)$, $INTC(INTC)$, $CMCSA(CMCSA)$, $OXY(OXY)$, $VTRS(VTRS)$, $UAL(UAL)$, $RF(RF)$

Top 10 bearish stocks: $TSLA(TSLA)$, $AAPL(AAPL)$, $AMZN(AMZN)$, $MSFT(MSFT)$, $F(F)$, $META(META)$, $WBD(WBD)$, $PYPL(PYPL)$, $GOOG(GOOG)$, $T(T)$

Source: Market Chameleon

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