Option Movers | PDD's Market Sentiment is Quite Bearish; Super Micro's Fluctuations May Continue
Wall Street's main indexes closed higher after choppy trading on Thursday (Nov 21), with the blue-chip Dow and the S&P 500 hitting one-week tops.
Regarding the options market, a total volume of 53,766,237 contracts was traded on Wednesday.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$; $TSLA(TSLA)$; $MSTR(MSTR)$; $MARA(MARA)$; $SMCI(SMCI)$; $AAPL(AAPL)$; $TGT(TGT)$; $AMZN(AMZN)$; $PLTR(PLTR)$; $GME(GME)$
Source: Tiger Trade App
$Super Micro Computer(SMCI)$ stock surged over 15% on Thursday after chip maker Nvidia mentioned the company as a client.
Semiconductor giant $Nvidia(NVDA)$, one of the most valuable companies in the world, listed Super Micro as one of its reliable partners alongside Dell, Foxconn, Micron, and Vertiv, in its earnings call Wednesday.
Options trading suggests that traders expect the stock to remain volatile for weeks to come. A total number of 996.14K options related to $Super Micro(SMCI)$ was traded, of which 65% were call options. A particularly high volume was seen for the $30 strike call option expiring this Friday, with 83,337 contracts trading as of Thursday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
China's $PDD Holdings(PDD)$ tumbled over 10% on Thursday as third-quarter revenue and profit fell short of market estimates. Promotional offers and discounts did not persuade cost-conscious consumers to spend as much as expected on its e-commerce platforms.
While Pinduoduo has benefited from its low-cost focus, competitive pressure has been increasing with rivals ramping up their own promotions and discounts, resulting in a price war.
PDD's revenue jumped 44% to 99.35 billion yuan ($13.72 billion) for the three months ended Sept. 30. That compared with the 102.65 billion yuan average of 17 analyst estimates compiled by LSEG.
Market sentiment for PDD Holdings is quite bearish. Based on option delta volume, traders sold a net equivalent of -498,357 shares of stock. The largest bearish delta came from buying puts.
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: $SMCI(SMCI)$; $WFC(WFC)$; $CMI(CMI)$; $TGT(TGT)$; $KMI(KMI)$; $INTC(INTC)$; $CMG(CMG)$; $PFE(PFE)$; $AAPL(AAPL)$; $TSLA(TSLA)$
Top 10 bearish stocks: $AMZN(AMZN)$; $NVDA(NVDA)$; $GOOGL(GOOGL)$; $T(T)$; $C(C)$; $MSFT(MSFT)$; $GOOG(GOOG)$; $PLTR(PLTR)$; $KO(KO)$; $CVX(CVX)$
Source: Market Chameleon
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