Option Movers | Nvidia's Volume Nearly Doubles; This SMCI Put Soars 2200%+ in One Day!
U.S. stocks fell on Wednesday (Aug 28) and Wall Street's key volatility gauge VIX climbed 11% as investors dug into Nvidia's Q2 earnings report that outstripped top-and-bottom line expectations.
Regarding the options market, a total volume of 35,603,140 contracts was traded on Wednesday.
Top 10 Option Volumes
Top 10:$NVDA(NVDA)$; $TSLA(TSLA)$; $SMCI(SMCI)$; $AAPL(AAPL)$; $PDD(PDD)$; $AMD(AMD)$; $AMZN(AMZN)$; $INTC(INTC)$; $CHWY(CHWY)$; $ZIM(ZIM)$
Source: Tiger Trade App
$Nvidia(NVDA)$ stock dropped 6.9% in after-hours trading as the artificial intelligence chipmaker failed to live up to investor hopes with its latest results on Wednesday, delivering an underwhelming forecast and news of production snags with its much-ballyhooed Blackwell chips.
The company’s quarterly report — the most anticipated part of the tech industry’s earnings season — met or beat analysts’ estimates on nearly every measure. But Nvidia investors have grown accustomed to blowout quarters, and the latest numbers didn’t qualify.
Second-quarter revenue was $30.04 billion, beating estimates of $28.70 billion. Sales in Nvidia's data center segment grew 154% to $26.3 billion in the second quarter ended July 28, above estimates of $25.15 billion. From the first quarter, it increased 16%.
“Death, taxes, and Nvidia beats on earnings are three things you can bank on," said Ryan Detrick, chief markets strategist at Carson Group. "Here's the issue: The size of the beat this time was much smaller than we've been seeing."
"Even future guidance was raised, but again not by the tune from previous quarters," he added. "This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season.”
A total number of 4.48 million options related to $Nvidia(NVDA)$ was traded, up 90.6% from the previous trading day. Trading volume of $130 call, $140 call and $110 put options are particularly high, with more than 10K options contracts trading respectively before earnings release.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$Super Micro Computer(SMCI)$ stock fell 19% on Wednesday. The AI server maker delayed the filing of its annual report and said it needed more time to assess the "effectiveness of internal controls" over its financial reporting,
The move comes a day after Hindenburg Research disclosed a short position in Super Micro and alleged "accounting manipulation" at the company, whose shares have nearly doubled in value this year on the back of the AI boom.
Super Micro said it had not made any updates to its results for the fiscal year and quarter ended June 30 that were announced earlier this month.
A total number of 778,568 options related to $Super Micro(SMCI)$ shares was traded, nearly 4 times higher than the 90-day average trading volume. The 19% tumble in SMCI stock spurred huge gains in related bearish options. The $445 strike put option expiring this Friday surged 2280% on Wednesday.
Source: Tiger Trade App
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: $CHWY(CHWY)$; $TFC(TFC)$; $DKNG(DKNG)$; $SOUN(SOUN)$; $K(K)$; $RKLB(RKLB)$; $URBN(URBN)$; $HD(HD)$; $SBUX(SBUX)$
Top 10 bearish stocks: $NVDA(NVDA)$; $AMZN(AMZN)$; $ZIM(ZIM)$; $SOFI(SOFI)$; $GOOG(GOOG)$; $TSLA(TSLA)$; $INTC(INTC)$; $SMCI(SMCI)$; $QRTEA(QRTEA)$; $META(META)$
Source: Market Chameleon
Based on option delta volume, traders bought a net equivalent of 1,080,528 shares of $CHWY(CHWY)$ stock. The largest bullish delta came from buying calls.
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$(NVDA)$ $(SMCI)$ $(CHWY)$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.
