To The Moon

The S&P 500 closed very slightly lower on Monday as investors took a breather after three weekly gains while they awaited key inflation readings and earnings reports due this week while a survey showed consumers concerned about inflation.

Regarding the options market, a total volume of 36,719,859 contracts was traded.

Top 10 Option Volumes

Top 10: $AMC Entertainment(AMC)$ ; $Tesla(TSLA)$ ; $Apple(AAPL)$ ; $Nvidia(NVDA)$; $Exxon Mobil(XOM)$; $GameStop(GME)$; $Alibaba(BABA)$ ; $Amazon(AMZN)$ ; $Intel(INTC)$ ; $Palantir(PLTR)$

Source: Tiger Trade App

Shares of videogame retailer GameStop surged nearly 75% and theater chain AMC jumped 78% on Monday after "Roaring Kitty", an account associated with a social media finance influencer credited with sparking the 2021 meme stock rally, returned to X.com after a three-year hiatus from the app.

Keith Gill, known as "Roaring Kitty" on YouTube and "DeepF***ingValue" on Reddit, was a key figure in the so-called Reddit rally, which saw shares of GameStop surge as much as 21-fold over two weeks in January 2021 before crashing to pre-surge levels in the subsequent days.

The Roaring Kitty account on Sunday posted a sketch of a man leaning forward in a chair, a popular meme among gamers that indicates things are getting serious.

Source: X

A total number of 1.91M options related to AMC shares was traded, 71.3 times higher from the previous trading day, of which call options accounted for 76%. A particularly high trading volume was seen for the $8 strike Call option expiring May 17, 2024 with a total number of 173,778 options contracts trading on Monday. AMC$8 call expiring this Friday soared 4600% to $0.47 overnight, compared with a previous close of $0.01 on Friday. $AMC 20240517 8.0 CALL$ 

Unusual Options Activity

Source: Market Chameleon

Alibaba will report results for its March quarter on Tuesday. The company is expected to report earnings of 1.29 Chinese yuan (18 cents) a share from revenue of 220.6 billion yuan ($30.5 billion).

Investors will focus on what management has to say about the outlook and signals about consumption trends in China. News about the company’s high-growth cloud computing and artificial intelligence arm could move the stock as well.

A total number of 553,965 options related to Alibaba shares was traded, of which call options accounted for 74%. A particularly high trading volume was seen for the $85 strike call option expiring May 17, 2024, with a total number of 24,896 options contracts trading on Monday.$BABA 20240517 85.0 CALL$ 

A total number of 722,377 options related to Exxon Mobil shares was traded, of which call options accounted for 95%. A particularly high trading volume was seen for the $115 strike call option expiring May 17, 2024, with a total number of 210,405 options contracts trading on Monday.$XOM 20240517 115.0 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 15,259,310 shares of AMC stock. The largest bullish delta came from buying calls. The largest delta volume came from the 17-May-24 8 Call, with traders getting long 2,882,734 deltas on the single option contract.$AMC 20240517 8.0 CALL$ 

Top 10 bullish stocks: AMC, GME, XOM, SOUN, TUP, ONON, HOOD, CRNX, C, MULN

Top 10 bearish stocks: AAPL, ENB, DJT, EU, MPW, CVS, F, AMD, TLRY, PTEN

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