To The Moon

The S&P 500 notched a record high close on Wednesday (Aug 27) ahead of quarterly results from Nvidia, Wall Street's most closely watched event this week, which will test the rally that has pushed valuations of AI-related companies to levels that some investors view as too high.

Regarding the options market, a total volume of 41,419,085 contracts was traded on Wednesday, call ratio accounted for 62%.

Top 10 Option Volumes

Top 10: $NVDA(NVDA)$; $TSLA(TSLA)$; $PLTR(PLTR)$; $NIO(NIO)$; $AAPL(AAPL)$; $HOOD(HOOD)$; $AMD(AMD)$; $INTC(INTC)$; $MSTR(MSTR)$; $SOFI(SOFI)$

Source: Tiger Trade App

A total number of 761.68K options related to PLTR was traded on Wednesday. A particularly high volume expiring this Friday was seen for the $160 strike call option, with a total number of 29,855 open interests as of Wednesday.

Television host Jim Cramer is once again reiterating his bullish stance on $Palantir Technologies Inc.(PLTR)$, tying the stock’s potential and his latest price target to the recent surge in $MongoDB Inc.(MDB)$.

Source: Market Chameleon

On Tuesday, in a post on X, the host of CNBC’s Mad Money suggested that MongoDB's earnings momentum could spill over into Palantir, framing the software company as the next big beneficiary in the data and AI sector. “You know they are going to buy Palantir off of MongoDB,” he said.

Once again emphasizing the impact of MongoDB’s earnings beat on Palantir, Cramer says, “Bears didn’t see Mongo coming!” He also reiterated his price target for Palantir at $200 a share, around 24% upside from current levels. “You think this stock isn’t headed to $200 anymore? Think again.”

Unusual Options Activity

Source: Market Chameleon

$Alibaba (BABA)$ is expected to post Q1 FY2026 revenue of 252.9 billion yuan on August 29, a 4% year-over-year increase, according to LSEG estimates.

The expected move for BABA options expiring on Aug 29, 2025 (1 days) is ±$7.17 (5.99%), with a price range of $112.5 - $126.84.

Source: Option Charts

China's $Alibaba(BABA)$ is likely to highlight its artificial intelligence strategy with its quarterly results on Friday. The companies have invested billions of dollars into AI over the past three years following the global success of ChatGPT, hailing it as a key revenue driver.

Analysts estimate revenue from its cloud business which includes AI-related product sales grew just 4.3% in the April-June quarter from the previous quarter to 31.4 billion yuan ($4.4 billion), according to LSEG data. That would be up 18% from a year earlier, but suggests growth is slowing.

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: $NVDA(NVDA)$; $PG(PG)$; $UNH(UNG)$; $ON(ON)$; $TTD(TTD)$; $CCL(CCL)$; $PSKY(PSKY)$; $MRNA(MRNA)$; $ABNB(ABNB)$; $DAL(DAL)$

Top 10 bearish stocks: $WBA(WBA)$; $TSLA(TSLA)$; $PLTR(PLTR)$; $WMT(WMT)$; $F(F)$; $WFC(WFC)$; $GOOGL(GOOGL)$; $GOOG(GOOG)$; $T(T)$; $AMZN(AMZN)$

Source: Market Chameleon