Option Movers | Nvidia's Volume Doubles; Colgate-Palmolive Has 98% Call Options
Market Overview
The Nasdaq ended lower while the Dow and S&P 500 were nearly flat on Tuesday (Oct. 17) as Treasury yields rose and shares of chipmakers fell after the Biden administration said it planned to halt shipments of advanced artificial intelligence chips to China.
Regarding the options market, a total volume of 34,780,368 contracts was traded, up 5% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPY(SPY)$, $QQQ(QQQ)$, $NVDA(NVDA)$, $IWM(IWM)$, $VIX(VIX)$, $TSLA(TSLA)$, $AAPL(AAPL)$, $BAC(BAC)$, $HYG(HYG)$, $AMZN(AMZN)$
Source: Tiger Trade App
Options related to equity index ETFs are still popular with investors, with 8.98 million $SPDR S&P500 ETF Trust(SPY)$ (SPY) and 3.96 million $Invest QQQ Trust ETF(QQQ)$ (QQQ) options contracts trading on Tuesday.
Nvidia and a number of other AI chip companies saw their shares fall Tuesday due to new U.S. export restrictions on China. $NVIDIA Corp(NVDA)$ stock closed lower by nearly 5% and at one point earlier it was down nearly 8%.
There are 1.52 million Nvidia option contracts traded on Tuesday, up 133% from the previous trading day. Call options account for 55% of overall option trades. Particularly high volume was seen for the $440 strike call option expiring October 20, with 78,333 contracts trading. NVDA 20231020 440.0 CALL
Source: Market Chameleon
Most Active Equity Options
Special %Calls >70%: $Colgate-Palmolive(CL)$, $Kenvue Inc(KVUE)$, $Marathon Digital Holdings Inc(MARA)$, $Johnson & Johnson(JNJ)$
Data From CBOE Trader Alert, as of 17 October 2023 EDT
Unusual Options Activity
Source: Market Chameleon
$Bank of America(BAC)$’s third-quarter profits beat Wall Street estimates as it joined other big lenders in earning more on loan interest payments, while also benefiting from a better-than-expected performance in investment banking and trading. The shares gained 2.3% on Tuesday.
There are 643.3K Bank of America option contracts traded on Tuesday, up 46% from the previous trading day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $27.5 strike call option expiring October 20, with 47,994 contracts trading. BAC 20231020 27.5 CALL
Source: Market Chameleon
$Colgate-Palmolive(CL)$ is approaching its ex-dividend date, with shareholders needing to purchase shares before Friday to qualify for the next dividend payment of $0.48 per share. Payable Nov. 15; for shareholders of record Oct. 23; ex-div Oct. 20.
There are 120.1K Colgate-Palmolive option contracts traded on Tuesday, up 16 times from the previous trading day. Call options account for 98% of overall option trades. Particularly high volume was seen for the $75 strike call option expiring May 17, 2024, with 51,631 contracts trading. CL 20240517 75.0 CALL
Source: Market Chameleon
$Moderna, Inc.(MRNA)$ stock slumped more than 6% on Tuesday and posted a five-day losing streak. At their session low, shares hit their lowest level since November 2020. Moderna on Monday reaffirmed its full year 2023 COVID-19 vaccine revenue guidance of $6B to $8B, but also warned that there remained "uncertainty" regarding U.S. vaccination rates.
There are 96.87K Moderna option contracts traded on Tuesday, up 15% from the previous trading day. Put options account for 64% of overall option trades. Particularly high volume was seen for the $115 strike put option expiring October 20, with 6,820 contracts trading. MRNA 20231020 115.0 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 option delta volume, traders sold a net equivalent of -1,300,178 Colgate-Palmolive shares of stock. The largest bearish delta came from selling calls. The largest delta volume came from the 17-May-24 75 Call, with traders getting short 1,830,966 deltas on the single option contract.
Top 10 bullish stocks: $DAL(DAL)$, $KVUE(KVUE)$, $AMD(AMD)$, $AMZN(AMZN)$, $USB(USB)$, $ABT(ABT)$, $MDT(MDT)$, $TSLA(TSLA)$, $C(C)$, $MS(MS)$
Top 10 bearish stocks: $CL(CL)$, $AAPL(AAPL)$, $BAC(BAC)$, $GOOGL(GOOGL)$, $PFE(PFE)$, $JNJ(JNJ)$, $NEM(NEM)$, $MRNA(MRNA)$, $MSFT(MSFT)$; $NEE(NEE)$
Source: Market Chameleon
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$(NVDA)$ $(BAC)$ $(CL)$ $(MRNA)$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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