Option Movers｜Nvidia's Volume Surges 106% and Traders Bet to $900 Despite Stock Kept Dropping
Market Overview
The Nasdaq and S&P 500 posted modest gains on Tuesday(April 9), a day ahead of major inflation data, weighed down by financial stocks as investors braced for major U.S. banks to kick off earnings reporting season on Friday.
Regarding the options market, a total volume of 34,899,582 contracts was traded, up 14% from the previous trading day.
Top 10 Option Volumes
Top 10: $TSLA(TSLA)$, $NVDA(NVDA)$, $AAPL(AAPL)$, $INTC(INTC)$ , $AMD(AMD)$, $AMZN(AMZN)$, $META(META)$, $Alphabet(GOOG)$ , $Boeing(BA)$ , $SoFi Technologies Inc.(SOFI)$
Source: Tiger Trade App
Shares of Nvidia fell 2%. The stock has come off recent highs, and one analyst said a sharper decline was on the way. D.A. Davidson analyst Gil Luria said major AI chip customers such as Amazon.com and Microsoft likely will be shifting a greater amount of their investment toward in-house hardware and he calls for a “significant cyclical downturn by 2026” for Nvidia. Luria has a Hold rating on Nvidia stock and a $620 target price, which is among the lowest of any Wall Street analyst.
There are 1441.56K Nvidia option contracts traded on Tuesday, up 106% from the previous trading day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $900 strike call option expiring April 12, with 50,603 contracts trading.$NVDA 20240412 900.0 CALL$
Unusual Options Activity
Source: Market Chameleon
Tilray Brands sank 20.7% after reporting a fiscal third-quarter loss wider than expectations and issuing disappointing fiscal-year guidance.
There are 205,245 Tilray option contracts traded on Tuesday, up 35% from the previous trading day. Call options account for 72% of overall option trades. Particularly high volume was seen for the $2.5 strike call option expiring April 12, with 20,789 contracts trading.$TLRY 20240412 2.5 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 sold a net equivalent of -1,396,518 shares of Boeing stock. The largest bearish delta came from selling calls. The largest delta volume came from the 17-May-24 200 Call, with traders getting short 536,595 deltas on the single option contract.$BA 20240517 200.0 CALL$
Top 10 bullish stocks: TSLA, GOOG, C, T, INTC, AMD, MSFT, AG, AAL, WFC
Top 10 bearish stocks: BA, META, XOM, CSCO, HUM, NKE, MTCH, BAC, MU, HAL
Source: Market Chameleon
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$(NVDA)$ $(TLRY)$ $(BA)$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.
