Option Movers | PDD's Volume Soars 5 Times; SoFi Shows Bullish Sentiment
Wall Street stocks ended lower on Monday (Aug 25) as investors parsed the outlook for U.S. interest rates and looked ahead to AI chipmaker Nvidia's quarterly earnings this week while digesting a rally on Friday that lifted the Dow Jones Industrial Average to a record high close.
Regarding the options market, a total volume of 44,165,485 contracts was traded on Monday, call ratio accounted for 61%.
Top 10 Option Volumes
Top 10: $TSLA(TSLA)$; $NVDA(NVDA)$; $PLTR(PLTR)$; $SOFI(SOFI)$; $INTC(INTC)$; $AAPL(AAPL)$; $NIO(NIO)$; $AMD(AMD)$; $MSTR(MSTR)$; $PDD(PDD)$
Source: Tiger Trade App
E-commerce company $PDD Holdings(PDD)$, which operates low-cost platforms Pinduoduo in China and Temu internationally, beat quarterly revenue estimates on Monday, although net profit fell due to investments to ward off growing competition.
U.S.-listed shares of the company were up 1%, after having jumped more than 11% in premarket trading, following executive comments that increased investments will cause choppiness in near-term financials.
The second-quarter earnings showed PDD has increased spending across the board on everything from server costs to sales and marketing expenses as part of its drive to improve the ecosystem for merchants and consumers alike.
A total number of 407.80K options related to PDD Holdings was traded on Monday, 5.1 times higher than the 90-day average trading volume. A particularly high volume was seen for the $140 strike call options expiring October 17, with a total number of 34,320 contracts trading on Monday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
$SoFi Technologies(SOFI)$ stock rose 4.5% on Monday. SoFi has surged 77% in the latest three months. SOFI is rapidly transforming into a capital-light, fee-driven fintech platform with accelerating scale.
In Q2 FY25, fee-based revenue surged 72% YoY to $378 million, now 44% of total revenue at a $1.5 billion+ run rate. With 34% member growth, expanding cross-buy, and EBITDA margins nearing 30%, SoFi’s diversification reduces rate sensitivity while compounding profitability.
A total number of 807,842 options related to $SOFI(SOFI)$ was traded on Monday, of which 72% were call options. SOFI continued to show bullish sentiment after the share price rally. Based on option delta volume, traders bought a net equivalent of 341,398 shares of SoFi 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: $NVDA(NVDA)$; $PG(PG)$; $PLTR(PLTR)$; $BKR(BKR)$; $PFE(PFE)$; $AVGO(AVGO)$; $NFLX(NFLX)$; $CNC(CNC)$; $DVN(DVN)$; $OXY(OXY)$
Top 10 bearish stocks: $WYNN(WYNN)$; $GOOGL(GOOGL)$; $TSLA(TSLA)$; $CVS(CVS)$; $WBA(WBA)$; $WMT(WMT)$; $UNH(UNH)$; $AAPL(AAPL)$; $HPQ(HPQ)$; $COIN(COIN)$
Source: Market Chameleon
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