Market Overview
The Nasdaq and the benchmark S&P 500 closed lower on Monday (May 18) as investors took some profits in technology stocks while surging Treasury yields and high oil prices fueled concerns that inflation and borrowing costs could stay elevated.
Regarding the options market, a total volume of 62,226,960 contracts was traded, down 17.5% from the previous trading day.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$, $TSLA(TSLA)$, $VIX(VIX)$, $MSFT(MSFT)$, $AAPL(AAPL)$, $AMZN(AMZN)$, $MU(MU)$, $INTC(INTC)$, $Netflix(NFLX)$, $Meta Platforms, Inc.(META)$
The world's most valuable company, $NVIDIA(NVDA)$, is scheduled to report results on Wednesday. The chipmaker was the S&P 500's biggest index-point drag on Monday, falling 1.3%. Expectations are high for the company, whose shares have risen sharply from a March low, while the Philadelphia SE Semiconductor Index has surged this year on strong demand for AI-related chips.
There are 3.94 million Nvidia option contracts traded on Monday, down 7% from the previous trading day. Call options account for 67% of overall option trades. Particularly high volume was seen for the $222.5 strike call option expiring May 18, with 315,804 contracts trading. NVDA 20260518 222.5 CALL
$Tesla Motors(TSLA)$ fell 2.9% on Monday. CEO Elon Musk spoke remotely at the Samson International Smart Mobility Summit in Tel Aviv on Monday, claiming that autonomous Tesla robo-taxis will “probably” be “widespread in the U.S. by the end of this year.” Musk added that he is working to get the SpaceX initial public offering “going pretty soon.”
There are 3.86 million Tesla option contracts traded on Monday, down 1% from the previous trading day. Call options account for 58% of overall option trades. Particularly high volume was seen for the $410 strike put option expiring May 18, with 199,981 contracts trading. TSLA 20260518 410.0 PUT
Unusual Options Activity
Shares of $ServiceNow(NOW)$ surged 8.8% on Monday, leading the S&P 500 for the session. Bank of America reinstated coverage of ServiceNow with a Buy rating and $130 price target, writing that while AI is disrupting the software landscape it thinks ServiceNow stands to benefit from AI solutions. Bank of America also reinstated coverage of Salesforce with an Underperform rating and $160 price target based on a structural reset driven by the AI transition.
There are 420,467 ServiceNow option contracts traded on Monday, up 17% from the previous trading day. Call options account for 83% of overall option trades. Particularly high volume was seen for the $110 strike call option expiring May 22, with 63,258 contracts trading. NOW 20260522 110.0 CALL
$Chevron(CVX)$ shares jumped 3% on Monday. Goldman Sachs raised its price goal on CVX to $216 from $211. It maintained a Buy rating on the stock. The analyst said the company continues to show a strong free cash flow outlook, supported by its upstream assets and possible upside tied to Venezuela.
There are 174,000 Chevron option contracts traded on Monday, up 190% from the previous trading day. Call options account for 92% of overall option trades. Particularly high volume was seen for the $170 strike call option expiring June 26, with 31,337 contracts trading. CVX 20260626 170.0 CALL
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