Option Movers | ARM's Volume surges 677%; Boeing Sees About 80% Put Options
Market Overview
U.S. stocks closed lower on Wednesday (Apr. 17) as crude prices tumbled and investors weighed cautious U.S. Federal Reserve commentary and ongoing geopolitical strife against mixed quarterly earnings.
Regarding the options market, a total volume of 45,899,101 contracts was traded, up 19% from the average daily trading volume.
Top 10 Option Volumes
Top 10: $TSLA(TSLA)$, $NVDA(NVDA)$, $AMD(AMD)$, $AMZN(AMZN)$, $META(META)$, $AAPL(AAPL)$, $INTC(INTC)$, $PLTR(PLTR)$, $MSFT(MSFT)$, $PFE(PFE)$
Source: Tiger Trade App
$United Continental(UAL)$ shares surged more than 17% Wednesday to a seven-month high after the carrier forecast second-quarter earnings well ahead of Wall Street estimates despite ongoing delivery delays from Boeing.
There are 401.6K United Airlines option contracts traded on Wednesday, up 210% from the previous trading day. Put options account for 54% of overall option trades. Particularly high volume was seen for the $45 strike put option expiring April 19, with 22,892 contracts trading. UAL 20240419 45.0 PUT
Source: Market Chameleon
Boeing's safety culture and manufacturing quality, both at the center of a corporate crisis following a January mid-air panel blowout on a near-new 737 MAX 9, were scrutinized on Wednesday in two U.S. Senate hearings. US lawmakers challenged Boeing Co. to expend the necessary time and effort to reset what they called a broken safety culture and criticized the planemaker’s relationship with regulators as overly cozy. Boeing shares have dropped nearly 35% this year.
There are 255.7K Boeing option contracts traded on Wednesday, up 106% from the previous trading day. Put options account for 79% of overall option trades. Particularly high volume was seen for the $185 strike put option expiring April 19, with 29,938 contracts trading. BA 20240419 185.0 PUT
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$ARM Holdings(ARM)$ shares were taking it on the chin Wednesday after a disappointing earnings report from ASML Holdings led to a broad-based sell-off in semiconductor stocks. Arm was the worst performer of the group as its shares finished the day down 12%, which was even worse than ASML's 7.1% drop.
There are 315K ARM option contracts traded on Wednesday, up 677% from the previous trading day. Put options account for 60% of overall option trades. Particularly high volume was seen for the $110 strike put option expiring April 19, with 25,486 contracts trading. ARM 20240419 110.0 PUT
Source: Market Chameleon
U.S. Treasury yields dipped, slowing a sell-off over the past week that pushed benchmark yields to their highest level since November as the Fed reassessed the need for interest rate cuts. Benchmark 10-year notes last rose 18/32 in price to yield 4.5832%, from 4.657% late on Tuesday. The 30-year bond last rose 27/32 in price to yield 4.7012%, from 4.757% late on Tuesday. $iShares 20+ Year Treasury Bond ETF(TLT)$ (TLT) has received investor attention. (Note: The iShares 20+ Year Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than twenty years.)
There are 886K TLT option contracts traded on Wednesday, up 44% from the previous trading day. Put options account for 58% of overall option trades. Particularly high volume was seen for the $94 strike put option expiring April 19, with 137,932 contracts trading. TLT 20240419 94.0 PUT
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 -5,404,380 shares of Tesla stock. The largest bearish delta came from selling calls. The largest delta volume came from the 19-Apr-24 160 Call, with traders getting short 2,793,004 deltas on the single option contract. TSLA 20240419 160.0 CALL
Top 10 bullish stocks: $SPCE(SPCE)$, $MPW(MPW)$, $META(META)$, $PG(PG)$, $BAC(BAC)$, $NIO(NIO)$, $GOOGL(GOOGL)$, $NCLH(NCLH)$, $DOMO(DOMO)$, $AAL(AAL)$
Source: Market Chameleon
Top 10 bearish stocks: $TSLA(TSLA)$, $LW(LW)$, $AAPL(AAPL)$, $NVDA(NVDA)$, $AMD(AMD)$, $DJT(DJT)$, $AMC(AMC)$, $ADBE(ADBE)$, $BA(BA)$; $MSGE(MSGE)$
Source: Market Chameleon
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$(UAL)$ $(BA)$ $(ARM)$ $(TLT)$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.
