Option Movers｜Trump Media Could See a Massive Gamma Squeeze As Lots of Traders Bet DJT to $90 by March 28
Market Overview
U.S. stocks slipped on Tuesday(Mar 26), giving up modest gains late in the session to send the Dow and S&P 500 to their third straight decline, as investors awaited economic data in a holiday-shortened week to gauge the Federal Reserve's policy path.
Regarding the options market, a total volume of 32,732,696 contracts was traded, up 4% from the previous trading day.
Top 10 Option Volumes
Top 10: $SPY(SPY)$, $QQQ(QQQ)$, $TSLA(TSLA)$, $NVDA(NVDA)$, $AAPL(AAPL)$, $AMD(AMD)$, $IWM(IWM)$, $Micron Technology(MU)$, $Meta Platforms, Inc.(META)$ , $TRUMP MEDIA & TECHNOLOGY GROUP CORP(DJT)$
Source: Tiger Trade App
Shares of former President Donald Trump’s social media company $TRUMP MEDIA & TECHNOLOGY GROUP CORP(DJT)$ surged 16% after it began trading on the Nasdaq. Trump Media completed its merger with shell company Digital World Acquisition Corp. on Monday.
There are 347.5K DJT option contracts traded on Tuesday. Particularly high volume was seen for the $90 strike call option expiring March 28, with 33,837 contracts trading. Trump Media could see a massive gamma squeeze for these deeply out-of-the-money bets as DJT rises in price, according to InvestorPlace Markets Analyst.$DJT 20240328 90.0 CALL$
Source: Market Chameleon
Tesla will give a one-month trial of its driver-assist technology Full Self-Driving (FSD) to existing and new customers in the United States, according to Tesla CEO Elon Musk and the company's website. Tesla shares gained 2.9% on Tuesday.
There are 2.58M Tesla option contracts traded on Tuesday, up 78% from the previous trading day. Call options account for 55% of overall option trades. Particularly high volume was seen for the $185 strike call option expiring March 28, with 173,514 contracts trading.$TSLA 20240328 185.0 CALL$
Unusual Options Activity
Source: Market Chameleon
The video game retailer $GameStop(GME)$ tumbled 15% after reporting shrinking revenue compared with the same period a year ago. GameStop posted $1.79 billion in the fourth quarter, lower than the $2.23 billion seen in the comparable three-month period in the year before. But the company reported 22 cents in adjusted earnings per share, higher than the 16 cents per share figure seen a year ago.
There are 244,659 GME option contracts traded on Tuesday, up 36% from the previous trading day. Call options account for 64% of overall option trades. Particularly high volume was seen for the $25 strike call option expiring March 28, with 15,361 contracts trading.$GME 20240328 25.0 CALL$
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 bought a net equivalent of 2,440,533 shares of Carnival stock. The largest bullish delta came from buying calls. The largest delta volume came from the 05-Apr-24 17 Call, with traders getting long 952,077 deltas on the single option contract.$CCL 20240405 17.0 CALL$
Top 10 bullish stocks: CCL, PFE, KDP, MU, CZR, NFLX, BAC, HPE, C, MMM
Top 10 bearish stocks: AAPL, NVDA, GOOGL, PYPL, AMZN, TSLA, F, META, MSFT, AMD
Source: Market Chameleon
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
$(DJT)$ $(TSLA)$ $(GME)$ $(CCL)$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.
