Option Movers | Nvidia's $1000 Call Shows Unusually High Open Interest; China Large-Cap ETF Sees 93% Call Ratio
U.S. stocks ended sharply higher on Tuesday (Mar. 12th), with the S&P 500 registering a record high close as Oracle shares surged and consumer price data failed to dampen investors' hopes of interest rate cuts in the coming months.
Regarding the options market, a total volume of 40,736,926 contracts was traded on Tuesday.
Top 10 Option Volumes
Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $SPX(SPX)$; $TSLA(TSLA)$; $NVDA(NVDA)$; $IWM(IWM)$; $AAPL(AAPL)$; $VIX(VIX)$; $AMD(AMD)$; $META(META)$
Source: Tiger Trade App
$Nvidia(NVDA)$ shares surged 7.16% on Tuesday. The chip maker's pivotal role in the artificial-intelligence market was underlined by earnings from software company Oracle.
The strong market for Nvidia's graphics-processing units was emphasized by enterprise-software giant Oracle in the latter company's own earnings report after the market close on Monday. Oracle signed a new cloud-computing infrastructure deal with Nvidia in its latest quarter and said it plans to boost capital spending in the next fiscal year, suggesting sustained demand for AI chips.
The next major catalyst for Nvidia is likely to be its GTC developers' event, which kicks off on March 18.
A total number of 1.66 million options related to Nvidia was traded, of which 66% were call options. Market sentiment for NVDA was quite bullish. Based on option delta volume, traders bought a net equivalent of 2,940,570 shares of Nvidia stock. The largest bullish delta came from buying calls. Open interest for Nvidia's $1000 call is particularly high as of Mar 12, with a total number of 96,182 open interest as of Mar. 12.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$China Large-Cap ETF(FXI)$ rose 2.1% on Tuesday as Chinese ADRs rallied. Investors seemed encouraged by an improvement in the consumer price index, which was up 0.7% in February, showing increased demand during the key Lunar New Year holiday season.
Alibaba was up 1.6%; JD.com gained 4.99%; and Pinduoduo parent PDD Holdings rose 5.6%. (Note: FXI is a $4.9 billion fund from BlackRock’s iShares with a simple strategy of giving investors “exposure to large companies in China,” according to iShares. The fund gives investors the convenience of “access to 50 of the largest Chinese stocks in a single fund.”)
A total number of 410,227 options related to FXI was traded, of which 93% were call options. Market sentiment for FXI was bullish as of Mar 12. Based on option delta volume, traders bought a net equivalent of 1,340,808 shares of stock. The largest bullish delta came from buying calls.
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: $NVDA(NVDA)$; $NYCB(NYCB)$; $SOUN(SOUN)$; $PFE(PFE)$; $AIG(AIG)$; $PLTR(PLTR)$; $JPM(JPM)$; $ORCL(ORCL)$; $MARA(MARA)$; $WBD(WBD)$
Top 10 bearish stocks: $AAPL(AAPL)$; $BA(BA)$; $F(F)$; $AMZN(AMZN)$; $NIO(NIO)$; $PLUG(PLUG)$; $VALE(VALE)$; $CCJ(CCJ)$; $AEM(AEM)$; $BP(BP)$
Source: Market Chameleon
Based on option delta volume, traders bought a net equivalent of 2,940,570 shares of $Nvidia(NVDA)$ stock. The largest bullish delta came from buying calls. The largest delta volume came from the 15-Mar-24 905 Call, with traders getting long 327,349 deltas on the single option contract.
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