Option Movers | TSMC's Volume Surges 358%; Nvidia Shows Bullish Delta From Buying Calls
Market Overview
The S&P 500 and the Nasdaq tumbled on Wednesday (Jul 17) as plunging microchip shares, in the face of potential escalation of U.S. trade conflicts with China, exacerbated the ongoing rotation out of megacap tech-related stocks.
Regarding the options market, a total volume of 53,462,861 contracts was traded, up 12.8% from the previous trading day.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $AMD(AMD)$, $Amazon(AMZN)$, $Meta(META)$, $Intel(INTC)$, $SoFi Technologies(SOFI)$, $Broadcom(AVGO)$, $TSMC(TSM)$
The grouping of large technology and tech-adjacent companies was down $527 billion in market value on Wednesday, which would make for the seventh-largest single-day loss on record.
$NVIDIA Corp(NVDA)$ and other technology stocks were under heavy pressure Wednesday, reflecting concerns about potential policy ramifications on the chip sector as well as an ongoing move out of tech winners. "The action is indicative of ongoing rotation," Janney strategist Dan Wantrobski wrote in a note to clients.
Shares of Nvidia were down 6.6% on Wednesday, while shares of $Meta Platforms, Inc.(META)$ were down 5.7%.
There are 5.91M Nvidia option contracts traded on Wednesday, up 88.3% from the previous trading day. Call options account for 60% of overall option trades. Particularly high volume was seen for the $115 strike put option expiring July 19, with 202,050 contracts trading. $NVDA 20240719 115.0 PUT$
$Taiwan Semiconductor Manufacturing(TSM)$’s earnings beat lofty analysts’ estimates on growing AI investments around the world on Thursday.
The chipmaker for Apple Inc. and Nvidia Corp. said net income rose to NT$247.8 billion ($7.6 billion). The average estimate was for a 29% increase, and many expected TSMC to hike its full-year outlook after sales jumped in the June period. The company said last week that its second-quarter sales grew at the fastest pace since 2022.
There are 456.32K TSMC option contracts traded on Wednesday, up 358% from the previous trading day. Call options account for 53% of overall option trades. Particularly high volume was seen for the $170 strike put option expiring July 19, with 16,096 contracts trading. $TSM 20240719 170.0 PUT$
Unusual Options Activity
$Intel(INTC)$ rallied Wednesday, defying a broad selloff among chip companies, as investors speculated the two could benefit from fresh policies under either a Biden or Trump administration.
There are 684,217 Intel option contracts traded on Wednesday, 2.5 times higher than the 90-day average trading volume. Call options account for 82% of overall option trades. Particularly high volume was seen for the $37 strike call option expiring July 19, with 48,437 contracts trading. $INTC 20240719 37.0 CALL$
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 5,990,436 shares of stock. The largest bullish delta came from buying calls. The largest delta volume came from the 19-Jul-24 120 Put, with traders getting long 2,658,943 deltas on the single option contract.
Top 10 bullish stocks: $Nvidia(NVDA)$, $Pfizer(PFE)$, $Cisco(CSCO)$, $Marathon Digital(MARA)$, $Intel(INTC)$, $GameStop(GME)$, $Nu Holdings(NU)$, $Starbucks(SBUX)$, $Vale(VALE)$, $Nikola(NKLA)$
Top 10 bearish stocks: $Sirius XM(SIRI)$, $AMD(AMD)$, $Apple(AAPL)$, $SoFi Technologies(SOFI)$, $Amazon(AMZN)$, $Citigroup(C)$, $Walmart(WMT)$, $Nike(NKE)$, $Meta(META)$, $Southwest Airlines(LUV)$
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$(AAPL)$ $(AMD)$ $(AMZN)$ $(INTC)$ $(AVGO)$ $(TSM)$ $(META)$ $(NVDA)$ $(SOFI)$ $(PFE)$ $(TSLA)$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.
