Option Movers | Micron to Reward Bulls; Traders Bet DWAC Could More Than Double Next Week
Market Overview
Wall Street's main stock indexes closed higher on Wednesday (Mar. 20) after the Federal Reserve eased investor jitters by keeping borrowing costs unchanged and reinforcing expectations that rates could be cut as many as three times this year.
Regarding the options market, a total volume of 36,829,037 contracts was traded, up 11% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPY(SPY)$, $QQQ(QQQ)$, $SPX(SPX)$, $IWM(IWM)$, $TSLA(TSLA)$, $NVDA(NVDA)$, $AMD(AMD)$, $VIX(VIX)$, $AAPL(AAPL)$, $SLV(SLV)$
Source: Tiger Trade App
Options related to equity index ETFs are still popular with investors, with 7.11 million $SPDR S&P500 ETF Trust(SPY)$ (SPY) and 3.03 million $Invest QQQ Trust ETF(QQQ)$ (QQQ) options contracts trading on Wednesday.
$Tesla(TSLA)$ stock gained 2.5% on Wednesday. The move came after it was reported that the cost of Model Y vehicles made in China would rise by 5,000 yuan, or about $700, from the beginning of April, according to Reuters, which cited confirmation from the company.
Tesla has made similar announcements about Y pricing in the U.S. and Europe recently.
There are 1.57 million Tesla option contracts traded on Wednesday, up 21% from the previous trading day. Call options account for 55% of overall option trades. Particularly high volume was seen for the $175 strike call option expiring March 22, with 215,142 contracts trading. TSLA 20240322 175.0 CALL
Unusual Options Activity
Source: Market Chameleon
Memory chip maker $Micron Technology(MU)$ tapped a surge in artificial intelligence adoption to forecast third-quarter revenue above estimates on Wednesday and post a surprise quarterly profit.
Its shares shot up more than 18% in extended trading, adding to a rise of more than 60% over the last 12 months. Micron's stock was last at about $113.8, and a close at that level on Thursday would be its highest ever.
There are 415.9K Micron option contracts traded on Wednesday, up 184% from the previous trading day. Call options account for 68% of overall option trades. Particularly high volume was seen for the $110 strike call option expiring March 22, with 17,613 contracts trading. MU 20240322 110.0 CALL
Source: Market Chameleon
U.S.-listed shares of $PDD Holdings Inc(PDD)$ surged early Wednesday before PDD stock pared back some its gains in afternoon trades. The Chinese e-commerce company reported fourth-quarter earnings and sales that easily topped expectations, with revenue more than doubling from a year earlier.
There are 378.4K PDD Holdings option contracts traded on Wednesday, up 138% from the previous trading day. Call options account for 66% of overall option trades. Particularly high volume was seen for the $140 strike call option expiring March 22, with 23,210 contracts trading. PDD 20240322 140.0 CALL
Source: Market Chameleon
Shares of $Digital World Acquisition Corp(DWAC)$, the special-purpose acquisition corporation looking to buy former President Donald Trump’s social-media company, soared 17.8% on Wednesday, two days before a shareholder vote on the proposed merger.
There are 107.2K DWAC option contracts traded on Wednesday, up 105% from the previous trading day. Call options account for 80% of overall option trades. Particularly high volume was seen for the $90 strike call option expiring March 28, with 23,210 contracts trading. DWAC 20240328 90.0 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.
Based on option delta volume, traders sold a net equivalent of -4,486,386 shares of Tesla stock. The largest bearish delta came from selling calls. The largest delta volume came from the 22-Mar-24 175 Call, with traders getting short 4,848,132 deltas on the single option contract.
Top 10 bullish stocks: $NVDA(NVDA)$, $MARA(MARA)$, $COIN(COIN)$, $PBR(PBR)$, $PARA(PARA)$, $FSR(FSR)$, $MPW(MPW)$, $MU(MU)$, $WULF(WULF)$, $F(F)$
Source: Market Chameleon
Top 10 bearish stocks: $TSLA(TSLA)$, $AAPL(AAPL)$, $OPEN(OPEN)$, $GOOGL(GOOGL)$, $SIRI(SIRI)$, $RIVN(RIVN)$, $AMZN(AMZN)$, $PDD(PDD)$, $BAC(BAC)$; $FCX(FCX)$
Source: Market Chameleon
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$(TSLA)$ $(MU)$ $(PDD)$ $(DWAC)$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.
