To The Moon

U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.

The benchmark S&P 500 index has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.

Options Broad View

A total volume of 33,967,067 contracts are traded on Tuesday, up 3% from the previous day. Call options account for 50% of total options trades.

There are 7.34 million $SPDR S&P500 ETF Trust(SPY)$ options traded on Tuesday. Call options account for 40% in overall option trades. Particularly high volume was seen for the $395 strike put option expiring August 31, with 271,420 contracts trading on Tuesday.

Top 10 Option Volumes

Top 10: $SPY(SPY)$, $QQQ(QQQ)$, $TSLA(TSLA)$, $AAPL(AAPL)$, $IWM(IWM)$, $AMZN(AMZN)$, $BBBY(BBBY)$, $HYG(HYG)$, $NVDA(NVDA)$, $TQQQ(TQQQ)$

Options related to equity index ETFs are still top choices for investors, with 2.72 million $Invest QQQ Trust ETF(QQQ)$ options contracts trading on Tuesday. Total trading volume for SPY and QQQ decrease 5% and 2%, respectively, from the previous day.

Source: Tiger Trade APP

Elon Musk has sent an additional letter of deal termination to Twitter Inc to include a recent whistleblower complaint from former security head of the social media firm as another reason to scrap the $44 billion deal. Twitter, however, said in its regulatory filing the fresh termination notice was invalid and wrongful under the deal terms. Tesla shares fell 2.5% on Tuesday.

There are 1.72 million Tesla option contracts traded on Tuesday. Call options account for 52% of overall option trades. Particularly high volume was seen for the $285 strike call option expiring September 2, with 73,361 contracts trading on Tuesday.

Regarding Apple, a total volume of 1.24 million option contracts is traded on Tuesday. Call options account for 56% of overall option trades. Particularly high volume was seen for the $162.5 strike call option expiring September 2, with 82,658 contracts trading on Tuesday.

Unusual Options Activity

Source: Market Chameleon

$Bed Bath & Beyond(BBBY)$ will unveil its new turnaround strategy on Wednesday, which could send the meme stock still higher or drag it back down. The shares lost 9.3% on Tuesday, but the stock has still more than doubled in the past month.

There are 693.2K Bed Bath & Beyond option contracts traded on Tuesday. Call options account for 64% of overall option trades. Particularly high volume was seen for the $15 strike call option expiring September 2, with 38,939 contracts trading on Thursday.

$ChargePoint Holdings Inc(CHPT)$ shares rose 1.6% in Tuesday's after-hours session after the company reported second-quarter revenue results that came in above estimates and issued guidance. ChargePoint said fiscal second-quarter revenue increased 93% year-over-year to $108.3 million, which beat average analyst estimates of $103.97 million. The company reported a quarterly earnings loss of 28 cents per share, which was down from a loss of 13 cents per share year-over-year.

There are 237.2K ChargePoint option contracts traded on Tuesday. Call options account for 68% of overall option trades. Particularly high volume was seen for the $16 strike call option expiring September 2, with 48,205 contracts trading on Thursday.

Shares of $Chewy(CHWY)$ fell 11.2% in extended-hours trading Tuesday after the company lowered its sales guidance for the year, citing changing consumer spending habits. The pet supplies company guided for 2022 sales between $9.9 billion and $10 billion, lower than its previous outlook of $10.2 billion to $10.4 billion.

There are 119.7K Chewy option contracts traded on Tuesday. Put options account for 58% of overall option trades. Particularly high volume was seen for the $35 strike call option expiring October 21, with 7,859 contracts trading on Tuesday.

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: $SPY(SPY)$, $QQQ(QQQ)$, $IWM(IWM)$, $SLV(SLV)$, $XLF(XLF)$, $GT(GT)$, $EFA(EFA)$, $VERU(VERU)$, $IYR(IYR)$, $ASHR(SAHR)$

SPY had the highest bullish wagers, with traders getting long 4M deltas on balance. QQQ and IWM also saw bullish option activities.

Source: Market Chameleon

Total options volume related to $iShares Silver Trust(SLV)$ (SLV) also saw an increase on Tuesday. There are 247.9K option contracts traded on Tuesday. Put options account for 67% of overall option trades.

Top 10 bearish stocks: $APPL(APPL)$, $EWZ(EWZ)$, $OXY(OXY)$, $F(F)$, $TSLA(TSLA)$, $MPC(MPC)$, $XLE(XLE)$, $SOFI(SOFI)$, $UBER(UBER)$, $BITO(BITO)$

Oil headed for a third monthly drop, the longest declining streak in more than two years, on prospects for slower global growth as central banks tighten policy and China presses on with its Covid Zero strategy.

$Occidental Petroleum(OXY)$ (OXY) options trading was also active on Tuesday. There are 155.4K OXY option contracts traded on Tuesday. Call options account for 64% of overall option trades.