Option Movers | Nvidia Sinks as Call Options Get Monetized; Coinbase Shows Bullish Sentiment
The S&P 500 and Nasdaq closed lower on Friday (Mar. 8th) after touching record highs during the session, with high-flying chip stocks going into reverse and a mixed labor market report that showed more new jobs than expected with a rising unemployment rate.
Regarding the options market, a total volume of 57,904,226 contracts was traded on Friday.
Top 10 Option Volumes
Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $SPX(SPX)$; $NVDA(NVDA$; $TSLA(TSLA)$; $AMD(AMD)$; $AAPL(AAPL)$; $IWM(IWM)$; $VIX(VIX)$; $META(META)$
Source: Tiger Trade App
$Nvidia(NVDA)$ shares fell 5.6% to $875.28 on Friday, erasing gains it had notched earlier in the session. It was the largest percentage decrease for shares since May 31, 2023, when they fell 5.7%.
The price action has not been prompted by any specific news. Instead, this is a classic response to a call-heavy regime. With the end of the week approaching, traders began exercising their in-the-money call options on Nvidia earlier Friday. This then prompted option dealers to unwind their hedges by selling the underlying Nvidia shares, compounding Friday's selloff.
Source: Market Chameleon
Nonetheless, Nvidia is likely to remain a momentum front-runner for the time being on the back of aggressive AI-related tailwinds. Consider the fact that the company's data center segment recently reported quarterly revenue of $18.4 billion vs. just around $3.6 billion in the comparable quarter last year.
Unusual Options Activity
Source: Market Chameleon
$Coinbase(COIN)$ stock rose 5.8% Friday to close at $256.62 a share, its highest since December 2021. When the biggest US cryptocurrency exchange went public in a direct listing in 2021, the reference price was set at $250 per share.
Bitcoin briefly rallied to a record high on Friday in volatile trading, as crypto mania continued to sweep through the investment community.
The leading cryptocurrency topped the $70,000 mark for the first time, boosted by investor demand for new U.S. spot exchange-traded crypto products and expectations for global interest rates to fall.
A total number of 528,854 options related to Coinbase was traded on Friday, 2.2 times higher than the 90-day average volume. Market sentiment for COIN was bullish as of Mar 8. Based on option delta volume, traders bought a net equivalent of 540,314 shares of stock. The largest bullish delta came from buying calls.
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: $PBR(PBR)$; $AMD(AMD)$; $NYCB(NYCB)$; $SAVE(SAVE)$; $MARA(MARA)$; $GE(GE)$; $NKLA(NKLA)$; $COIN(COIN)$; $WBD(WBD)$; $SQ(SQ)$
Top 10 bearish stocks: $AAPL(AAPL)$; $GOOGL(GOOGL)$; $NVDA(NVDA)$; $AMZN(AMZN)$; $INTC(INTC)$; $T(T)$; $TSLA(TSLA)$; $PYPL(PYPL)$; $TSM(TSM)$; $PFE(PFE)$
Source: Market Chameleon
Based on option delta volume, traders bought a net equivalent of 1,704,082 shares of stock. The largest bullish delta came from selling puts.
The largest delta volume came from the 19-Apr-24 $15 Call, with traders getting long 575,419 deltas on the single option contract.
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club
$(NVDA)$ $(COIN)$ $(PBR)$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.
