To The Moon

Market Overview

U.S. stocks closed lower on Monday (June 26), as investors were wary of betting on riskier assets before seeing the outcome of Russia's aborted weekend mutiny.

Regarding the options market, a total volume of 32,031,124 contracts was traded, down 15% from the previous trading day.

Top 10 Option Volumes

Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $TSLA(TSLA)$; $NVDA(NVDA)$; $AMZN(AMZN)$; $AAPL(AAPL)$; $IWM(IWM)$; $AMD(AMD)$; $VIX(VIX)$; $CCL(CCL)$;

Source: Tiger Trade App

Options related to equity index ETFs are still popular with investors, with 7.47 million $SPDR S&P500 ETF Trust(SPY)$ (SPY) and 3.44 million $Invest QQQ Trust ETF(QQQ)$ (QQQ) options contracts trading on Monday.

Goldman Sachs downgraded $Tesla Motors(TSLA)$ to Neutral from Buy with a price target of $248.00 (from $185.00) following a massive rally (up 108% YTD) in the EV maker's stock. This represents the fourth downgrade this month for Tesla. Shares tumbled 6.1% on Monday.

There are 2.22 million Tesla option contracts traded on Monday. Traders seem to still maintain confidence in Tesla. Call options account for 56% of overall option trades. Particularly high volume was seen for the $260 strike call option expiring June 30, with 102,569 contracts trading.

Source: Market Chameleon

Most Active Options

1. Most Active Trading Equities Options:

Special %Calls >70%: $Lucid Group Inc(LCID)$, $Intel(INTC)$, $Uber(UBER)$, $Amazon.com(AMZN)$, $Carnival(CCL)$, $Alphabet(GOOGL)$, $Advanced Micro Devices(AMD)$

Data From CBOE Trader Alert, as of 26 June 2023 EDT

2. Most Active Trading ETFs Options

Special %Calls >70%: $Nasdaq100 Bear 3X ETF(SQQQ)$, $ProShares Bitcoin Strategy ETF(BITO)$, $iShares Silver Trust(SLV)$, $Barclays iPath Series B S&P 500 VIX Short-Term Futures(VXX)$, $S&P Biotech Bull 3X Shares(LABU)$

Data From CBOE Trader Alert, as of 26 June 2023 EDT

Special %Puts >70%: $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$, $Financial Select Sector SPDR Fund(XLF)$

Data From CBOE Trader Alert, as of 26 June 2023 EDT

Unusual Options Activity

Source: Market Chameleon

Cruise operator $Carnival(CCL)$ on Monday forecast third-quarter profit largely below estimates as rising marketing and labor costs eat into gains from higher ticket prices and strong demand. The company's shares, which have surged nearly 80% in the past two months on resurgent demand for cruises, dropped 7.6% on Monday.

There are 426.5K Carnival option contracts traded on Monday, approximately 4 times the 90-day average trading volume. Call options account for 72% of overall option trades. Particularly high volume was seen for the $15 strike call option expiring June 30, with 32,840 contracts trading.

Source: Market Chameleon

British ultra-luxury sports car maker Aston Martin has signed a deal with $Lucid Group Inc(LCID)$, the California-based electric luxury car startup. Lucid will provide electric motors under the arrangement and battery systems for Aston Martin’s future electric vehicles. Lucid shares rose 1.5% on Monday.

In addition, The Saudi Public Investment Fund, or PIF, bought 265,693,703 shares of Lucid stock in a private placement of common stock for an average price of $6.83 a share. It’s a huge $1.8 billion purchase representing almost 15% of the total stock outstanding, before the issuance. Lucid shares are up another 5.2% in after-hours trading Monday following the disclosure of the purchase.

Source: Tiger Trade

There are 294.5K Lucid option contracts traded on Monday, approximately 4 times the 90-day average trading volume. Call options account for 77% of overall option trades. Particularly high volume was seen for the $6 strike put option expiring June 30, with 49,188 contracts trading.

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: $INTC(INTC)$, $AMC(AMC)$, $CCL(CCL)$, $XLF(XLF)$, $GLD(GLD)$, $AIV(AIV)$, $AZN(AZN)$, $IWM(IWM)$, $MULN(MULN)$, $XLE(XLE)$

Top 10 bearish stocks: $SPY(SPY)$, $PLTR(PLTR)$, $SLV(SLV)$, $AAPL(AAPL)$, $NVDA(NVDA)$, $LCID(LCID)$, $META(META)$, $DIS(DIS)$, $ET(ET)$, $SOFI(SOFI)$

Source: Market Chameleon

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