Option Movers | Traders Bet Tesla to $170 This Week; Morgan Stanley's Volume Surges 110% Ahead of Earnings
Market Overview
U.S. stocks closed sharply lower on Monday (Apr. 15), as an early lift from a strong retail sales report succumbed to a jump in Treasury yields and concerns about rising geopolitical tensions between Iran and Israel.
Regarding the options market, a total volume of 44,310,854 contracts was traded, down 13% from the average daily trading volume.
Top 10 Option Volumes
Top 10: $TSLA(TSLA)$, $NVDA(NVDA)$, $AAPL(AAPL)$, $AMD(AMD)$, $AMZN(AMZN)$, $RIVN(RIVN)$, $BAC(BAC)$, $PLTR(PLTR)$, $MSFT(MSFT)$, $META(META)$
Source: Tiger Trade App
$Tesla(TSLA)$ will lay off more than 10% of its global workforce, according to a memo sent to employees by CEO Elon Musk. The company’s shares tumbled 5.6% on Monday.
There are 1.93 million Tesla option contracts traded on Monday, down 60% from the previous trading day. Call options account for 64% of overall option trades. Particularly high volume was seen for the $170 strike call option expiring April 19, with 122,809 contracts trading. TSLA 20240419 170.0 CALL
Source: Market Chameleon
$Apple(AAPL)$ fell 2.2% on Monday as one of the biggest drags on the S&P 500 after data from research firm IDC showed the company's smartphone shipments dropped about 10% in the first quarter of 2024.
There are 1.06 million Apple option contracts traded on Monday, up 3% from the previous trading day. Call options account for 51% of overall option trades. Particularly high volume was seen for the $180 strike call option expiring April 19, with 99,145 contracts trading. AAPL 20240419 180.0 CALL
Unusual Options Activity
Source: Market Chameleon
Reports of mass layoffs and dismal quarterly EV sales at Tesla send $Rivian(RIVN)$ stock down another 8% on Monday. The shares have plunged by more than 64% this year.
There are 349.3K Rivian option contracts traded on Monday, up 56% from the previous trading day. Call options account for 57% of overall option trades. Particularly high volume was seen for the $9 strike call option expiring April 5, with 25,213 contracts trading. RIVN 20240419 9.0 CALL
Source: Market Chameleon
Wall Street bank $Morgan Stanley(MS)$ scheduled to report first-quarter earnings on Tuesday, days after a report that multiple federal regulators are probing a core division sent shares down sharply.
Analysts are expecting the bank to report earnings per share of $1.67 from revenue of $14.4 billion. That would be down slightly from the $1.70 a share and $14.5 billion of revenue it turned in for the same quarter a year ago.
There are 135.7K Morgan Stanley option contracts traded on Monday, up 110% from the previous trading day. Call options account for 63% of overall option trades. Particularly high volume was seen for the $96 strike call option expiring April 19, with 26,117 contracts trading. MS 20240419 96.0 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 -4,048,768 shares of Tesla stock. The largest bearish delta came from selling calls. The largest delta volume came from the 19-Apr-24 170 Call, with traders getting short 1,910,798 deltas on the single option contract.
Top 10 bullish stocks: $MRNS(MRNS)$, $GES(GES)$, $C(C)$, $BAC(BAC)$, $NEM(NEM)$, $WULF(WULF)$, $AGNC(AGNC)$, $SNAP(SNAP)$, $PDD(PDD)$, $AI(AI)$
Source: Market Chameleon
Top 10 bearish stocks: $TSLA(TSLA)$, $AAPL(AAPL)$, $RIVN(RIVN)$, $LW(LW)$, $HOOD(HOOD)$, $PLTR(PLTR)$, $NIO(NIO)$, $AMZN(AMZN)$, $AMD(AMD)$; $WBD(WBD)$
Source: Market Chameleon
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$(TSLA)$ $(AAPL)$ $(RIVN)$ $(MS)$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.
