Option Movers｜Disney's Volume Surged 145%; Peloton's May 10 $3.5 Put in Focus
The S&P 500 and Dow Jones Industrial Average both clung onto gains to ended slightly higher on Tuesday(May 7), extending recent winning streaks fueled by renewed expectations that the Federal Reserve will cut interest rates this year.
Regarding the options market, a total volume of 36,030,847 contracts was traded.
Top 10 Option Volumes
Top 10: $TSLA(TSLA)$; $NVDA(NVDA)$; $Palantir Technologies Inc.(PLTR)$ ; $AAPL(AAPL)$; $Walt Disney(DIS)$ ; $Rivian Automotive, Inc.(RIVN)$ ; $AMZN(AMZN)$; $AMD(AMD)$; $META(META)$; $Intel(INTC)$
Walt Disney reported fiscal second-quarter earnings that beat analysts’ estimates and boosted its fiscal-year profit guidance. Paid core subscribers to Disney + in the second quarter were 117.6 million, topping expectations. The stock was down 9.5%, however, after Chief Financial Officer Hugh Johnston said the company didn’t “expect to see core subscriber growth at Disney+ in the third quarter but anticipate sub-growth will return in Q4.”
A total number of 678.51K options related to DIS shares was traded, up 145% from the previous trading day, of which call options accounted for 70%. A particularly high trading volume was seen for the $108 strike call option expiring May 10, with a total number of 32,365 options contracts trading on Tuesday.$DIS 20240510 108.0 CALL$
Unusual Options Activity
Peloton Interactive surged 16% after CNBC reported that a number of private-equity firms have been considering a buyout of the at-home fitness company. First-quarter losses at Lucid Group narrowed from a year earlier, while sales at the electric-vehicle maker rose 21% to $173 million. About 30% of those sales, however, came from the Saudi government. Saudi government funds own a majority of Lucid stock.
A total number of 171,702 options related to PTON shares was traded, up 81% from the previous trading day, of which call options accounted for 61%. A particularly high trading volume was seen for the $3.5 strike put option expiring May 10, with a total number of 16,609 options contracts trading on Tuesday. $PTON 20240510 3.5 PUT$
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 -4,739,037 shares of Apple stock. The largest bearish delta came from selling calls. The largest delta volume came from the 10-May-24 182.5 Call, with traders getting short 3,238,460 deltas on the single option contract.$AAPL 20240510 182.5 CALL$
Top 10 bullish stocks: INTC, BAC, UAL, IP, GOOGL, SWKS, WYNN, PFE, KR, NCLH
Top 10 bearish stocks: AAPL, TSLA, DIS, NVDA, AMD, F, SBUX, AMZN, CVS, FCX
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