To The Moon

Wall Street ended higher on Tuesday (Oct. 25th) as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally.

Regarding the options market, a total volume of 34,765,913 contracts was traded, down 8% from the previous trading day.

Top 10 Option Volumes

Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $TSLA(TSLA)$; $IWM(IWM)$; $NVDA(NVDA)$; $SNAP(SNAP)$; $MARA(MARA)$; $AAPL(AAPL)$; $MSFT(MSFT)$; $GOOGL(GOOGL)$

Source: Tiger Trade App

Crypto stocks kept flying on Tuesday, with $Marathon Digital(MARA)$ stock soaring 11.54% to $9.76. Bitcoin extended a rally fueled by expectations of fresh demand from exchange-traded funds, reaching the highest price since May last year.

The possible approval in the coming weeks of the first US spot Bitcoin ETFs is stoking speculative ardor for the token. Asset managers BlackRock Inc. and Fidelity Investments are among those in the race to offer such products. Digital-asset bulls argue the ETFs would widen adoption of the cryptocurrency.

A US federal appeals court on Monday also formalized a victory for Grayscale Investments LLC in its bid to create a spot Bitcoin ETF over objections from the US Securities and Exchange Commission.

A total number of 533.9K options related to $Marathon Digital(MARA)$ was traded on Tuesday, of which 77% were call options. A particularly high trading volume was seen for the $10 strike call options expiring October 27, with a total number of 41,954 option contracts trading on Tuesday.

$MARA 20231027 10.0 CALL$

Source: Market Chameleon

Most Active Equities Options

Special %Calls>70%: $Marathon Digital(MARA)$; $Riot Blockchain(RIOT)$; $Intel(INTC)$; $Alibaba(BABA)$; $Palantir(PLTR)$; $AMD(AMD)$

Data From CBOE Trader Alert, as of 25 October 2023 EDT

Unusual Options Activity

Source: Market Chameleon

$iShares China Large-Cap ETF(FXI)$ jumps 3.2% on Tuesday. China's top parliament body has approved a bill that will allow local governments to front load part of their 2024 bond quotas and issuance of new sovereign debt, state media said on Tuesday, in a move to support the economy.

The approval by the standing committee of the National People's Congress (NPC), as it concludes a five-day meeting which began on Oct. 20, marks an extension of an expired bill on the issuance of new bond quotas in advance. The top parliament body also approved the adjustment of the central government's budget for 2023, state media reported.

A total number of 314,060 options related to $FXI(FXI)$ was traded, of which 86% were call options. A particularly high trading volume was seen for the $27.85 strike call options expiring November 17th, with a total number of 55,854 option contracts trading on Tuesday.

$FXI 20231117 27.85 CALL$

Source: 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: $CHPT(CHPT)$; $MARA(MARA)$; $AGNC(AGNC)$; $CGC(CGC)$; $NVDA(NVDA)$; $RIOT(RIOT)$; $COMM(COMM)$; $GOOGL(GOOGL)$; $SNAP(SNAP)$; $AMZN(AMZN)$

Top 10 bearish stocks: $T(T)$; $KO(KO)$; $GM(GM)$; $JBLU(JBLU)$; $PLUG(PLUG)$; $BAC(BAC)$; $D(D)$; $SQ(SQ)$; $UBER(UBER)$; $VNET(VNET)$

Based on option delta volume, traders sold a net equivalent of -823,168 shares of $AT&T(T)$ stock. The largest bearish delta came from selling calls. The largest delta volume came from the 27-Oct-23 15 Call, with traders getting short 361,943 deltas on the single option contract.

$T 20231027 15.0 CALL$

Source: Market Chameleon

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