Option Movers | Tesla Call Option Soars 152%; Traders Bet GameStop to Reach $30 This Week
Market Overview
Wall Street's benchmark S&P 500 index closed up 0.5% on Tuesday but concerns about slowing economic growth stunted gains and the Dow dipped as bank stocks sank after warnings of current-quarter weakness while energy shares tumbled.
Regarding the options market, a total volume of 35,845,985 contracts was traded.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $Palantir(PLTR)$, $Amazon(AMZN)$, $Oracle(ORCL)$, $AMD(AMD)$, $JPMorgan(JPM)$, $Broadcom(AVGO)$, $GameStop(GME)$
Tesla stock rose 4.58% Tuesday, boosted by a new Buy rating from Deutsche Bank.
Deutsche Bank analyst Edison Yu launched coverage of Tesla stock with a Buy rating and a $295 price target. Tesla isn’t just “an auto maker but rather a technology platform attempting to reshape multiple industries, deserving of a unique type of valuation framework,” wrote Yu. It’s “in a league of its own and represents our highest conviction secular leader, poised to reshape multiple industries across auto, energy, mobility, and robotics.”
Along with making cars, Tesla has self-driving software, backup power, EV charging, and a nascent robot business, among other things.
There are 1.54M Tesla option contracts traded on Tuesday. Call options account for 62% of overall option trades. Particularly high volume was seen for the $225 strike call option expiring September 13, with 114,546 contracts trading. The $225 strike call option expiring this Friday surged 152% on Tuesday. $TSLA 20240913 225.0 CALL$
$GameStop(GME)$ said on Tuesday it had filed for an offering of up to 20 million shares, sending its stock down more than 10% in extended trading after the videogame retailer's second-quarter revenue fell as consumers continued to switch to online buying.
The company, which has been at the center of a "meme stock" trading frenzy, is struggling with declining sales in its primary business of selling new and used video game discs due to a shift to digital downloads, game streaming, and e-commerce shopping.
There are 270.30K GameStop option contracts traded on Tuesday. Call options account for 60% of overall option trades. Particularly high volume was seen for the $30 strike call option expiring September 13, with 13,864 contracts trading. $GME 20240913 30.0 CALL$
Unusual Options Activity
$JPMorgan Chase(JPM)$ shares fell by more than 5% on Tuesday after the US bank’s president warned that investors were being too optimistic about its earnings for next year.
“[For] 2025, the analyst consensus is a drop in NII [net interest income] of $1.5bn, from $91.5bn to $90bn,” JPMorgan president Daniel Pinto told an industry conference organised by Barclays. “So, that is not very reasonable because the rate expectations [are] lower by 250 basis points. So, I think that that number will be lower.”
There are 333.07K JPMorgan option contracts traded on Tuesday. Call options account for 50% of overall option trades. Particularly high volume was seen for the $210 strike call option expiring September 13, with 13,055 contracts trading. $JPM 20240913 210.0 CALL$
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 -551,974 shares of $Alibaba(BABA)$ stock. The largest bearish delta came from selling calls. The largest delta volume came from the 20-Sep-24 Call, with traders getting short 114,828 deltas on the single option contract.
Top 10 bullish stocks: $Nvidia(NVDA)$, $Tesla(TSLA)$, $HP Inc.(HPQ)$, $Apple(AAPL)$, $AMD(AMD)$, $Oracle(ORCL)$, $Marathon Digital(MARA)$, $DigitalBridge Group(DBRG)$, $Iovance Biotherapeutics(IOVA)$, $General Motors(GM)$
Top 10 bearish stocks: $Palantir(PLTR)$, $Bank Bradesco SA(BBD)$, $American Airlines(AAL)$, $SoFi Technologies(SOFI)$, $Nio(NIO)$, $Alibaba(BABA)$, $Designer Brands(DBI)$, $TSMC(TSM)$, $Exxon Mobil(XOM)$, $JPMorgan(JPM)$
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$(NVDA)$ $(TSLA)$ $(AAPL)$ $(PLTR)$ $(AMZN)$ $(ORCL)$ $(AMD)$ $(JPM)$ $(AVGO)$ $(GME)$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.
