Option Movers | Microsoft's $430 Call Worth Attention As Stock Hits Record High; Adobe Shows Bearish Sentiment
U.S. stocks dropped on Thursday (Mar. 14th), with chipmaker stocks extending losses for a second day, and as a jump in producer prices left investors wondering if the Federal Reserve might wait longer than expected to cut interest rates.
Regarding the options market, a total volume of 47,476,459 contracts was traded on Thursday.
Top 10 Option Volumes
Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $TSLA(TSLA)$; $SPX(SPX)$; $NVDA(NVDA)$; $AAPL(AAPL)$; $VIX(VIX)$; $IWM(IWM)$; $AMD(AMD)$; $KWEB(KWEB)$
Source: Tiger Trade App
$Microsoft(MSFT)$ stock touched a record high of 427.81 in intraday trading. Shares of Microsoft ended the regular session Thursday up 2.4% to 425.22.
The Redmond, Wash.-based software giant said Microsoft Copilot for Security will be generally available worldwide on April 1. The generative AI tool will help security and IT professionals protect their operations from cybercriminals using its massive database of threat intelligence
In a client note, JPMorgan analyst Mark Murphy said Copilot will drive a paradigm shift in Microsoft's security capabilities. Mizuho Securities analyst Gregg Moskowitz also was positive on the security Copilot launch.
A total number of 991.6k options related to MSFT was traded, of which 67% were call options. A particularly high trading volume was seen for the $430 strike call option, with a total number of 111,365 options trading as of Mar. 14th.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$Adobe Inc.(ADBE)$ dropped 10.5% in extended trading after giving a weak outlook for sales in the current quarter, fueling concerns that new AI-focused startups pose a competitive threat.
In the fiscal first quarter, sales increased 11% to $5.18 billion. Profit, excluding some items, was $4.48 a share. Wall Street expected revenue of $5.14 billion and adjusted earnings of $4.38 a share.
Adobe expects $440 million in new recurring creative business in the current quarter, below the $459 million expected by analysts. That likely disappointed investors who want to see greater financial impact from the new AI features, said Parker Lane, an analyst at Stifel. “Investors are hearing a lot of great things from the company on the AI front, like increased adoption, and are simply waiting for that to reflect itself in the fundamentals.”
A total number of 112,691 options related to ADBE was traded before earnings release, 2.4 times higher than the 90-day average volume. Market sentiment was quite bearish as of Mar 14. Based on option delta volume, traders sold a net equivalent of -90,632 shares of ADBE stock. The largest delta volume came from the 15-Mar-24 580 Call, with traders getting short 22,836 deltas on the single option contract.
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: $PTON(PTON)$; $FSR(FSR)$; $UAA(UAA)$; $FGEN(FGEN)$; $FCX(FCX)$; $RBLX(RBLX)$; $GM(GM)$; $AREN(AREN)$; $U(U)$; $NU(NU)$
Top 10 bearish stocks: $AMZN(AMZN)$; $AAPL(AAPL)$; $SOUN(SOUN)$; $MSFT(MSFT)$; $NVDA(NVDA)$; $RIVN(RIVN)$; $BAC(BAC)$; $TSLA(TSLA)$; $PTEN(PTEN)$; $GOOGL(GOOGL)$
Source: Market Chameleon
Based on option delta volume, traders sold a net equivalent of -3,502,448 shares of $Amazon(AMZN)$ stock. The largest delta volume came from the 15-Mar-24 180 Call, with traders getting short 1,382,454 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
$(MSFT)$ $(ADBE)$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.
