To The Moon

Market Overview

The S&P 500 and Nasdaq closed lower on Thursday (June 20), as market bellwether Nvidia retreated from earlier gains, while investors evaluated recent economic data and commentary from Federal Reserve officials to determine the timing of interest-rate cuts this year.

Regarding the options market, a total volume of 54,101,210 contracts was traded, up 37% from the previous trading day.

Friday’s US options expiration may provide volatility-starved traders with some short-term market swings.

The so-called ‘triple-witching’ will see some $5.5 trillion worth of options tied to indexes, stocks, and exchange-traded funds fall off the board, according to an estimate from options platform SpotGamma. As the contracts disappear, investors will adjust their positions, adding a burst of volume capable of swinging individual holdings.

Top 10 Option Volumes

Top 10: $NVDA(NVDA)$, $AMD(AMD)$, $AAPL(AAPL)$, $TSLA(TSLA)$, $AMZN(AMZN)$, $GME(GME)$, $PLTR(PLTR)$, $DELL(DELL)$, $SMCI(SMCI)$, $MU(MU)$

Source: Tiger Trade App

$Nvidia(NVDA)$ shares declined more than 3.5% on Thursday, handing the title of the world's most valuable company back to Microsoft.

Trading in bearish options tied to Nvidia spiked on Thursday ahead of a record-setting “triple witching” expiration, as shares in the chip designer swung more than 6% from peak to trough.

There are 10.62 million Nvidia option contracts traded on Thursday, up 75% from the previous trading day. Call options account for 59% of overall option trades. Particularly high volume was seen for the $140 strike call option expiring June 21, with 551,999 contracts trading. NVDA 20240621 140.0 CALL

While volume in put options expiring on Friday with strike prices at $135 and $130 saw the biggest increases, with 365,000 and 250,000 contracts changing hands, respectively, according to FactSet data. NVDA 20240621 135.0 PUT, NVDA 20240621 130.0 PUT

The jump in activity caused the ratio of put options trading in Nvidia to call options in the stock to spike to 0.70, compared with 0.58 on Tuesday, FactSet data show.

Unusual Options Activity

Source: Market Chameleon

$AMD(AMD)$ shares added 4.6% on Thursday after Piper Sandler named the semiconductor maker a top pick. The firm said the company has “bright prospects” entering the second half of the year.

There are 2.07 million AMD option contracts traded on Thursday, up 213% from the previous trading day. Call options account for 62% of overall option trades. Particularly high volume was seen for the $165 strike call option expiring June 21, with 212,406 contracts trading. AMD 20240621 165.0 CALL

$Micron Technology(MU)$ is set to report earnings on June 26 after the closing bell and the shares waved recently. Micron dropped more than 6% on Thursday while still rose 2% this week.

There are 392.6K Micron option contracts traded on Thursday, down 13% from the previous trading day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $155 strike call option expiring June 21, with 23,624 contracts trading. MU 20240621 155.0 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 -14,934,700 shares of Nvidia stock. The largest bearish delta came from selling calls. The largest delta volume came from the 21-Jun-24 140 Call, with traders getting short 3,681,951 deltas on the single option contract.

Top 10 bullish stocks: $TSLA(TSLA)$, $AMD(AMD)$, $GME(GME)$, $CHPT(CHPT)$, $PM(PM)$, $PDD(PDD)$, $TGT(TGT)$, $MARA(MARA)$, $CSCO(CSCO)$, $FLEX(FLEX)$

Source: Market Chameleon

Top 10 bearish stocks: $NVDA(NVDA)$, $AAPL(AAPL)$, $CARR(CARR)$, $NKLA(NKLA)$, $AMZN(AMZN)$, $DJT(DJT)$, $PLTR(PLTR)$, $INTC(INTC)$, $GOLD(GOLD)$; $BILI(BILI)$

Source: Market Chameleon

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