To The Moon

Market Overview

U.S. stocks fell on Wednesday (May 22) as investors digested minutes of the Federal Reserve's most recent meeting but Nvidia's shares rose about 6% after the close on the semiconductor bellwether's stronger-than-expected revenue forecast.

Regarding the options market, a total volume of 34,328,292 contracts was traded, up 14% from the previous trading day.

Top 10 Option Volumes

Top 10: $TSLA(TSLA)$, $NVDA(NVDA)$, $AAPL(AAPL)$, $AMD(AMD)$, $GME(GME)$, $SBUX(SBUX)$, $AMC(AMC)$, $AMZN(AMZN)$, $INTC(INTC)$, $PFE(PFE)$

Source: Tiger Trade App

$Nvidia(NVDA)$ forecast quarterly revenue above estimates on Wednesday and announced a stock split, lifting its shares to record-high territory and impressing investors who have tripled the chipmaker's market value in the past year on AI optimism.

Traders have made a bet ahead of Nvidia's earnings. There are 1.09 million Nvidia option contracts traded on Wednesday, up 91% from the previous trading day. Call options account for 58% of overall option trades. Particularly high volume was seen for the $950 strike call option expiring May 24, with 30,490 contracts trading. NVDA 20240524 950.0 CALL

A settlement allowing $AMC Entertainment(AMC)$ to proceed with a stock conversion opposed by its meme stock base last year was affirmed Wednesday by Delaware’s highest court, send the shares up 8.8%.

There are 409.6K AMC Entertainment option contracts traded on Wednesday, up 14% from the previous trading day. Call options account for 80% of overall option trades. Particularly high volume was seen for the $5 strike call option expiring May 24, with 48,346 contracts trading. AMC 20240524 5.0 CALL

Unusual Options Activity

Source: Market Chameleon

$Starbucks(SBUX)$ shares gained 3.9% to $80.72, the highest close since April 30, 2024, when it closed at $88.49. The shares are currently up two consecutive days, up 4.1% over this period.

There are 422.9K Starbucks option contracts traded on Wednesday, up 338% from the previous trading day. Call options account for 55% of overall option trades. Particularly high volume was seen for the $75 strike put option expiring July 19, with 68,026 contracts trading. SBUX 20240719 75.0 PUT

U.S. drugmaker $Pfizer(PFE)$ on Wednesday launched a new multi-year program to reduce its expenses by about $1.5 billion by the end of 2027, adding on to a $4 billion cost cutting plan it announced last year. The shares gained 3.6%.

There are 348.4K Pfizer option contracts traded on Wednesday, up 404% from the previous trading day. Call options account for 70% of overall option trades. Particularly high volume was seen for the $30 strike call option expiring June 7, with 26,593 contracts trading. PFE 20240607 30.0 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 sold a net equivalent of -4,166,723 shares of Intel stock. The largest bearish delta came from buying puts. The largest delta volume came from the 19-Jul-24 41 Put, with traders getting short 1,073,989 deltas on the single option contract. INTC 20240719 41.0 PUT

Top 10 bullish stocks: $AMC(AMC)$, $GME(GME)$, $PFE(PFE)$, $SPWR(SPWR)$, $BNED(BNED)$, $PTEN(PTEN)$, $GSL(GSL)$, $TSM(TSM)$, $TEVA(TEVA)$, $ENPH(ENPH)$

Source: Market Chameleon

Top 10 bearish stocks: $INTC(INTC)$, $AAPL(AAPL)$, $AMZN(AMZN)$, $SBUX(SBUX)$, $DJT(DJT)$, $AMD(AMD)$, $MSFT(MSFT)$, $SHOP(SHOP)$, $SIRI(SIRI)$; $GOOG(GOOG)$

Source: Market Chameleon

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