To The Moon

U.S. stocks closed higher for a second straight day on Tuesday as solid quarterly results from Goldman Sachs and Lockheed Martin lessened worries of a weak earnings season.

The Dow Jones Industrial Average rose 337.98 points, or 1.12%, to 30,523.8, the S&P 500 gained 42.03 points, or 1.14%, to 3,719.98 and the Nasdaq Composite added 96.60 points, or 0.9%, to 10,772.40.

Options Broad View

A total volume of 34,448,937 contracts were traded on Tuesday, up 3.94% from the previous day. Call options account for 52% of total options trades.

There are 8.16 million SPDR S&P 500 ETF Trust options traded on Tuesday. Call options account for 44% in overall option trades. Particularly high volume was seen for the $370 strike put option expiring October 19, with 309,979 contracts trading on Tuesday.

Top 10 Option Volumes

Top 10: SPY, QQQ, TSLA, AAPL, IWM, VIX, AMZN, AMD, TQQQ, NVDA

Options related to equity index ETFs are still top choices for investors, with 2.65 million Invesco QQQ Trust options contracts trading on Tuesday. Call options account for 42% in overall option trades. Total trading volume for SPDR S&P 500 ETF Trust and Invesco QQQ Trust rose 0.74% and 6.43%, respectively, from the previous day.

Goldman Sachs rose 2.33% on Tuesday after posting better-than-expected financial results. It reported earnings of $8.25 a share, down from $14.93 a year earlier, and revenue for the quarter ended Sept. 30 fell 12% to $11.98 billion, it is integrating its investment banking and global markets businesses along with the asset and wealth management divisions into two segments, and will establish a new platform solutions division that will house its fintech platforms.

There are 78,110 option contracts traded on Tuesday. Call options account for 58% in overall option trades. Particularly high volume was seen for the $320 strike call option expiring October 21, with 2,738 contracts trading on Tuesday.

Source: Tiger Trade APP

Unusual Options Activity

Source: Market Chameleon

Carnival surged 11.14% on Tuesday as it said prior to Tuesday’s open that it has commenced a private offering of $1.25B aggregate principal amount of Senior Priority Notes due 2028 on an unsecured basis.

There are 288,700 option contracts traded on Tuesday, which was twice the average volume. Call options account for 54% in overall option trades. Particularly high volume was seen for the $8.5 strike call option expiring October 21, with 39,666 contracts trading on Tuesday.

Salesforce.com rose 4.31% on Tuesday as Starboard Value LP has taken a stake in it, with founder Jeff Smith saying a significant opportunity remains in it.

There are 94,120 option contracts traded on Tuesday. Call options account for 52% in overall option trades. Particularly high volume was seen for the $160 strike call option expiring October 21, with 8,474 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: INVZ, EWZ, CVNA, VALE, SCPL, CEI, ACI, CANO, PBR, KBH

Top 10 bearish stocks: VRM, HYG, NIO, SPY, AMZN, XLF, AAPL, PFE, PLTR, XLE