Nvidia's Volume Surges 51%; This Ford Put Soars 1400% after Shares Tanking 18% in One Day
The S&P 500 and Nasdaq Composite ended a fickle session weaker on Thursday(July 25), failing to regain ground lost in the previous day's tech-triggered sell-off as investors grappled with the likely direction of megacaps.
Regarding the options market, a total volume of 53,596,156 contracts was traded, up 8% from the previous trading day.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $Pfizer(PFE)$ , $AMD(AMD)$, $Ford(F)$ , $American Airlines(AAL)$ , $Amazon(AMZN)$, $Microsoft(MSFT)$, $Meta Platforms, Inc.(META)$
Source: Tiger Trade App
Shares of chip maker $NVIDIA Corp(NVDA)$ closed down 1.7% after the stock dropped 6.8% on Wednesday, falling along with other artificial-intelligence names.
There are 6.5M Nvidia option contracts traded on Thursday, up 51% from the previous trading day. Call options account for 59% of overall option trades. Particularly high volume was seen for the $115 strike call option expiring July 26, with 298,544 contracts trading. $NVDA 20240726 115.0 CALL$
Unusual Options Activity
Source: Market Chameleon
$Ford(F)$ closed down 18% after second-quarter adjusted earnings of 47 cents a share missed analysts’ estimates by a wide margin and the auto maker left unchanged its profit outlook for the year. It was the stock’s worst drop since Nov. 18, 2008, when shares dropped 25%.
There are 759777 Ford option contracts traded on Thursday, up 152% from the previous trading day. Put options account for 55% of overall option trades. Particularly high volume was seen for the $11.5 strike put option expiring July 26, with 39,736 contracts trading. The $11.5 strike put option expiring this Friday surged 1800% on Thursday. $F 20240726 11.5 PUT$
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 bought a net equivalent of 1,969,744 shares of Nvidia stock. The largest bullish delta came from buying calls. The largest delta volume came from the 02-Aug-24 122 Call, with traders getting short 2,041,200 deltas on the single option contract. $NVDA 20240802 122.0 CALL$
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club
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.
