To The Moon

Market Overview

The S&P 500 eked out a slim gain on Tuesday (Apr. 18th) after strength in some big technology stocks countered disappointing quarterly reports from $Johnson & Johnson(JNJ)$ and $Goldman Sachs(GS)$ as first-quarter earnings season kicked into gear.

Regarding the options market, a total volume of 31,074,588 contracts was traded, up 2% from the previous trading day.

Top 10 Option Volumes

Top 10: $SPY(SPY)$; $QQQ(QQQ)$; $VIX(VIX)$; $NVDA(NVDA)$; $IWM(IWM)$; $TSLA(TSLA)$; $AAPL(AAPL)$; $BAC(BAC)$; $AMZN(AMZN)$; $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$

Source: Tiger Trade App

Options related to equity index ETFs are still popular with investors, with 7.89 million $SPDR S&P500 ETF Trust(SPY)$ and 2.58 million $Invest QQQ Trust ETF(QQQ)$ options contracts trading on Tuesday.

The stock price of chipmaker $NVIDIA(NVDA)$ surged 2.46% to $276.67 on Tuesday, extending a months-long rally, following a "buy" recommendation from HSBC.

Investors are widely betting that $NVIDIA(NVDA)$ will continue to be a major player in the emerging wave of A.I. computing. HSBC forecasts that NVIDIA will hold a 90% market share in the fiscal year 2024. A particularly high open interest was seen for the $280 strike CALL option expiring this Friday. There were 18.75K open interests in this option chain as of Tuesday.

Source: Tiger Trade App

Most Active Options

1. Most Active Trading Equities Options:

Special %Calls >70%: $Bed Bath & Beyond(BBBY)$; $J&J(JNJ)$; Bank of America(BAC)$; $Alphabet (GOOGL)$;

Data From CBOE Trader Alert, as of 18 APR 2023 EDT

Special %Puts >70%: $Nikola(NKLA)$

Data From CBOE Trader Alert, as of 18 APR 2023 EDT

2. Most Active Trading ETFs Options

Special %Calls >70%: $VanEck Gold Miners ETF(GDX)$; $Nasdaq 100 Bear 3X ETF(SQQQ)$; $CSI China Internet ETF(KWEB)$; $VIX Short-Term Futures 1.5X ETF(UVXY)$; $iShares Silver Trust(SLV)$

Data From CBOE Trader Alert, as of 18 APR 2023 EDT

Special %Puts >70%: $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$; $SPDR S&P Regional Banking ETF(KRE)$

Data From CBOE Trader Alert, as of 18 APR 2023 EDT

Unusual Options Activity

Source: Market Chameleon

$Bank of America Corp(BAC)$ profit rose in the first quarter as it earned more from customers' interest payments while the Federal Reserve raised borrowing costs. The company's net income applicable to common shareholders rose to $7.66 billion, or 94 cents per share, for the three months ended March 31, the second-largest U.S. lender reported on Tuesday. That compares with $6.6 billion, or 80 cents per share, a year earlier.

A total number of 668,172 options related to $Bank of America Corp(BAC)$ was traded. A particularly high volume was seen for the $31 strike CALL option expiring this Friday, with 76,324 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: $GMDA(GMDA)$; $NVDA(NVDA)$; $BBBY(BBBY)$; $SPCE(SPCE)$; $XOM(XOM)$; $PBR(PBR)$; $SNAP(SNAP)$; $CVNA(CVNA)$; $NU(NU)$; $BKR(BKR)$

Top 10 bearish stocks: $AMZN(AMZN)$; $BAC(BAC)$; $JNJ(JNJ)$; $GPN(GPN)$; $USB(USB)$; $AAL(AAL)$; $GOOGL(GOOGL)$; $BABA(BABA)$; $TLRY(TLRY)$; $PLTR(PLTR)$

Source: Market Chameleon

Source: Market Chameleon

Wednesday’s Watchlist

$Netflix (NFLX)$ reported mixed first quarter results on Tuesday, missing Wall Street subscriber estimates while beating analyst expectations on earnings per share.

The stock, which initially fell as much as 12% after the release, saw shares pare losses as investors digested the report — the first since co-CEO and co-founder Reed Hastings stepped down from his leading role at the company. Netflix shares slid 1.41% in premarket trading.

$Tesla(TSLA)$ shares dropped 1.5% in premarket trading Wednesday after the company cut US prices for sixth time this year ahead of Q1 results.

Tesla Inc cut prices for some of its Model Y and Model 3 electric vehicles in the United States, its website showed late on Tuesday, the sixth time it has lowered U.S. prices this year amid concerns about the effect on its profit margins.

While Tesla is expected to report a 24.2% year-on-year increase in first-quarter revenue to $23.29 billion, analysts average profit estimate has fallen by about 2.4% in the last three months, according to Refinitiv data.

Source: Market Chameleon

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