To The Moon

Market Overview

U.S. stocks paused on Monday(May. 8th) after a strong rally in the prior session as investors shift focus to a key inflation reading later this week.

The S&P 500 gained 0.05%, while the Nasdaq Composite gained 0.18%, the Dow Jones Industrial Average fell 0.17%.

Regarding the options market, a total volume of 30,396,177 contracts was traded on Monday(May. 8th), down 28.06% from the previous trading day.

Top 10 Option Volumes

Top 10:  $SPDR S&P 500 ETF Trust(SPY)$, $Invesco QQQ Trust(QQQ)$, $Tesla Motors(TSLA)$, $Advanced Micro Devices(AMD)$, $NVIDIA Corp(NVDA)$, $Apple(AAPL)$, $iShares Russell 2000 ETF(IWM)$, $Amazon.com(AMZN)$, $Palantir Technologies Inc.(PLTR)$, $Cboe Volatility Index(VIX)$

Options related to equity index ETFs are popular with investors, with 6.68 million $SPDR S&P 500 ETF Trust(SPY)$ and 2.19 million $Invesco QQQ Trust(QQQ)$ options contracts trading on Monday(May. 8th).

Total trading volume for $SPDR S&P 500 ETF Trust(SPY)$ and $Invesco QQQ Trust(QQQ)$ slid 22.24% and 25.51% separately from the previous day. 56% of $SPDR S&P 500 ETF Trust(SPY)$ trades bet on bearish options.

$Palantir Technologies Inc.(PLTR)$ gained 4.45% on Monday and surged 21.45% in extended trading for its financial results. Its revenue rose 18% to $525.2 million and adjusted profit stood at 5 cents per share, and the company expects to turn a profit every quarter in 2023.

There were 365,250 $Palantir Technologies Inc.(PLTR)$ option contracts traded on Monday, surging over 170% from the previous day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $7.5 strike put option expiring May 12, with 39,028 contracts trading.

Source: Tiger Trade App

Most Active Options

1. Most Active Trading Equities Options:

Special %Calls >70%: $Carnival(CCL)$;

Data From CBOE Trader Alert, as of 8 May 2023 EDT

2. Most Active Trading ETFs Options

Special %Calls >70%: $SPDR Gold Shares(GLD)$; $iShares MSCI Brazil ETF(EWZ)$; $Nasdaq100 Bear 3X ETF(SQQQ)$; $iShares Silver Trust(SLV)$; $VIX Short-Term Futures 1.5X ETF(UVXY)$; $United States Natural Gas Fund LP(UNG)$;

Special %Puts >70%: $iShares Russell 2000 ETF(IWM)$; $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$; $iShares iBoxx $ Investment Grade Corporate Bond ETF(LQD)$

Data From CBOE Trader Alert, as of 8 May 2023 EDT

Unusual Options Activity​​

Source: Market Chameleon

$fuboTV Inc.(FUBO)$ surged 26.53% on Monday, it reported Q1 sales of $324.4 million, up 34% year over year, and the adjusted EPS loss was $0.27. Needham analyst Laura Martin reiterated her price target of $3 per share.

There were 110.7K $fuboTV Inc.(FUBO)$ option contracts traded on Monday. Call options account for 87% of overall option trades. Particularly high volume was seen for the $2 strike call option expiring May 12, with 19,616 contracts trading.

$Sea Ltd(SE)$ jumped 7.55% on Monday as its founder declared a 5% pay increase for most employees starting July, sending a strong signal to investors he thinks the e-commerce and gaming business has turned the corner after years of bleeding losses.

There were 24.87K $Sea Ltd(SE)$ option contracts traded on Monday, surging over 70% from the previous day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $84 strike put option expiring May 12, with 1,077 contracts trading.

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: $Amazon.com(AMZN)$, $Carnival(CCL)$, $Alphabet(GOOGL)$, $American Airlines(AAL)$, $Apple(AAPL)$, $Tyson(TSN)$, $Catalent(CTLT)$, $NVIDIA Corp(NVDA)$, $Alphabet(GOOG)$, $HP Inc(HPQ)$

Top 10 bearish stocks: $Tesla Motors(TSLA)$, $Warner Bros. Discovery(WBD)$, $Ford(F)$, $Boston Scientific(BSX)$, $Exxon Mobil(XOM)$, $Walt Disney(DIS)$, $Microsoft(MSFT)$, $Charles Schwab(SCHW)$, $Devon(DVN)$, $U.S. Bancorp(USB)$

Source: Market Chameleon

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