To The Moon

U.S. stocks ended lower on Tuesday (Jan.16th) after mixed earnings from Morgan Stanley and Goldman Sachs pressured banks, and as sell-offs in Boeing and Apple weighed on the S&P 500.

Regarding the options market, a total volume of 40,909,774 contracts was traded on Friday.

Top 10 Option Volumes

Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $SPX(SPX)$; $TSLA(TSLA)$; $NVDA(NVDA)$; $AMD(AMD)$; $VIX(VIX)$; $IWM(IWM)$; $AAPL(AAPL)$; $SAVE(SAVE)$

Source: Tiger Trade App

Shares of $Nvidia(NVDA)$, opens new tab and $Advanced Micro Devices (AMD)$, opens new tab jumped on Tuesday as investor optimism over the prospects of higher demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to hike their price targets for the semiconductor giants.

Nvidia currently has a dominant position in the market for advanced AI chips, but AMD is expected to gain ground this year as the company increases deliveries of its own chips to enterprise customers, Barclays analysts led by Tom O'Malley said in an investor note.

Nvidia's stock rose 3% to $563.82 and hit a new record high, while shares of AMD surged 8.31% to $158.74, rising to their highest level in more than two years. The value of Nvidia's shares more than tripled last year, making it the world's most valuable chipmaker, while those of AMD more than doubled.

A total number of 1.45 million options related to $Nvidia(NVDA)$ was traded on Tuesday, 2.09 times higher than the 90-day average volume. A total number of 1.27 million options related to $AMD(AMD)$ was traded on Tuesday, 2.3 times higher than the 90-day average volume.

A bulk order which bought 1.98K $155 strike expiring February is worth attention. This call option bets that AMD options won't go down below $155 before February 16th.

Source: Tiger Trade App

Unusual Options Activity

Source: Market Chameleon

Nio stock sank 8.6% on Tuesday as investors stayed cautious amid some near-term challenges. Recent insurance registration data out of China has showed sluggish trends for most of the Chinese EV upstarts and competition is still intense on the pricing front. Nio had 1,700 insurance registrations in China last week, down 43.33 percent from 3,000 the week before.

"We expect competition within the domestic market to remain intense and put pressure on pricing and profitability," warned Bernstein last week on the China EV sector. Forecasts for China electric vehicle sales in 2024 have been trimmed further in recent weeks.

A total number of 355,348 options related to $Nio(NIO)$ was traded on Tuesday, more than doubles than the 90-day average volume. Based on net delta volume, options related to $Nio(NIO)$ stock show much more negative net delta than positive delta on Tuesday.

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: $PHUN(PHUN)$; $DNN(DNN)$; $ET(ET)$; $RH(RH)$; $ACN(ACN)$; $AMD(AMD)$; $TSM(TSM)$; $COIN(COIN)$; $RIVN(RIVN)$; $VALE(VALE)$

Top 10 bearish stocks: $AAPL(AAPL)$; $SAVE(SAVE)$; $MSFT(MSFT)$; $PLUG(PLUG)$; $MPW(MPW)$; $WMT(WMT)$; $BA(BA)$; $NKLA(NKLA)$; $DVN(DVN)$; $BAC(BAC)$

Based on option delta volume, traders sold a net equivalent of -2,562,672 shares of $Apple(AAPL)$ stock. The largest bearish delta came from selling the 19-Jan-24 185 Call, with traders getting short 2,056,918 deltas on the single option contract.

Source: Market Chameleon

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