Option Movers | Meta's $500 Call Shows High Open Interest; Nvidia's Market Sentiment Remains Bullish
The S&P 500 and Nasdaq scored their biggest daily percentage gains since Feb. 22 and the Dow rose on Wednesday (July 31) as chip stocks rallied and the Federal Reserve kept U.S. interest rates unchanged while signaling possible easing in September if inflation cools.
Regarding the options market, a total volume of 45,764,336 contracts was traded on Wednesday.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$; $AMD(AMD)$; $TSLA(TSLA)$; $MSFT(MSFT)$; $AAPL(AAPL)$; $META(META)$; $AMZN(AMZN)$; $SOFI(SOFI)$; $AVGO(AVGO)$; $PYPL(PYPL)$
Source: Tiger Trade App
$Meta Platforms(META)$ beat market expectations for second-quarter revenue on Wednesday and issued a rosy sales forecast for the third quarter as well, signaling that robust digital-ad spending on its social media platforms can cover the cost of its artificial-intelligence investments. Shares of the company rose 7.17% $508.87 after the bell.
A total number of 386,892 options related to $Meta(META)$ was traded, of which 56% were call options. A particularly high open interest was seen for the $500 strike call option as of Wednesday, with a total number of 93,169 options contracts trading as of Wednesday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$Nvidia(NVDA)$ stock surged 12.8% on Wednesday. A new congressional trading form filed by Congresswoman Nancy Pelosi disclosed that she bought more shares worth of Nvidia.
According to the form, the Congresswoman representing the 11th district in California purchased 10,000 shares worth of Nvidia. The transaction was worth between $1M and $5M, according to the report.
Morgan Stanley said the July sell-off in Nvidia has gone too far and it’s time for investors to buy the dip. The firm moved the stock back to “top pick” status in the chip space.
A total number of 5.55 million options related to $Nvidia(NVDA)$ was traded. A particularly high trading volume was seen for the $120 strike call option expiring this Friday, with a total number of 234,398 options contracts trading as of Wednesday.
Based on option delta volume, traders bought a net equivalent of 10,286,980 shares of stock. The largest bullish delta came from buying calls.
Source: Market Chameleon
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.
Top 10 bullish stocks: $NVDA(NVDA)$; $INTC(INTC)$; $ABEV(ABEV)$; $PINS(PINS)$; $VALE(VALE)$; $TSM(TSM)$; $SNAP(SNAP)$; $WDC(WDC)$; $BTBT(BTBT)$; $PYPL(PYPL)$
Top 10 bearish stocks: $AMD(AMD)$; $CERE(CERE)$; $SOFI(SOFI)$; $PFE(PFE)$; $SIRI(SIRI)$; $WES(WES)$; $TLRY(TLRY)$; $F(F)$; $MU(MU)$; $LCID(LCID)$
Source: Market Chameleon
Based on option delta volume, traders sold a net equivalent of -2,287,102 shares of $AMD(AMD)$ stock. The largest bearish delta came from selling calls.
The largest delta volume came from the 02-Aug-24 150 Call, with traders getting short 458,905 deltas on the single option contract.
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
$(META)$ $(NVDA)$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.
