Market Overview
On June 10, The U.S. major indexes closed as follows: Dow Jones declined 1.87% at 49,918.78; S&P 500 declined 1.62% at 7,266.99; NASDAQ declined 1.98% at 25,169.50. A broad technology pull-back outweighed scattered strength in defensives, leaving all three benchmarks firmly in the red.Defensive sectors such as energy outperformed, but the dominant narrative remained a repricing of richly-valued chip and software leaders following months of outsized gains.
On June 10, the total trading volume of US stock options was 64,695,028 contracts. Among them, 46% are put options and 54% are call options. 918 stocks have option volume that is greater than their 30 day moving average volume.Top 100 stocks account for 84% of today's volume.
Top 10 Option Volumes
Top 10: TSLA、NVDA、AAPL、Cboe Volatility Index、Amazon.com、SUPER MICRO COMPUTER INC、Microsoft、Meta Platforms, Inc.、Oracle、Micron Technology。
Tesla: "resistance above, support below"
Tesla Motors shares fell nearly 4% on Wednesday. Over the past two days, large orders have frequently appeared in the TSLA options market, with total transaction volume exceeding tens of millions of dollars. Among these, selling out-of-the-money call options (Sell OTM Call) and far-month selling of out-of-the-money put options (Sell OTM Put) constituted the main force, presenting an overall pattern of resistance above and support below, indicating a range-bound, slightly bearish trend.
Large Order Transactions
The large order transactions over the past two days clearly outline the "resistance above, support below" pattern. Selling pressure dominates, with multiple sales of out-of-the-money Calls aimed at capping upside potential and earning time value. Among these, a near-month (expiring June 18) combination order simultaneously sold Calls at strike prices of 395.0 and 412.5, netting a premium of $1.896 million. This is a typical bear call spread strategy, explicitly betting that the stock price will struggle to break above $395 significantly before expiration. Additionally, there were large single orders selling Calls at strike prices of 385.0 (transaction value $1.8482 million) and 395.0 (transaction value $1.0395 million), further reinforcing the overhead resistance.
Support below comes from a large far-month (expiring July 24) sale of a Put at strike price 360.0, with a transaction value reaching $2.052 million. This indicates that some capital is optimistic that the stock price can hold above $360, willing to take on shares at this level and collect premiums, forming a "support floor" below. Simultaneously, a sale of a deep out-of-the-money far-month Call at strike price 500.0 (transaction value $1.4600 million) acts like placing a "ceiling" on long-term upside potential.
It is worth noting that buying interest has not been absent. There were two large near-month purchases of out-of-the-money Calls (strike prices 397.5 and 415.0), showing that some capital is still betting on a short-term price surge. Overall, the market presents a pattern of mixed bullish and bearish forces, with sellers slightly prevailing, and expectations lean towards range-bound trading with a slight bearish bias.
Whales load up on Nvidia deep OTM back-month put options
NVIDIA shares fell 3.73% on Wednesday, marking their second consecutive day of decline. With the stock price under pressure recently, several multi-million dollar block trades have emerged in the options market. Notably, concentrated buying of far-expiry out-of-the-money put options and the appearance of synthetic short strategies are particularly eye-catching, indicating diverging sentiment among institutions but an overall bias toward defense and bearishness.
Block Trades
Block trades over the past two days have shown significant divergence. On one hand, capital has been deployed at significant cost for long-term bearish bets or protection: The single largest trade involved buying 1,500 out-of-the-money put options with a strike price of $180 expiring in December 2028, with a transaction value of $5.487 million. Additionally, 1,500 deep out-of-the-money put options with a strike price of $150 and the same expiration date were bought for $3.465 million. On the other hand, there are also bullish or neutral-to-bullish voices in the market, evidenced by selling out-of-the-money put options with a strike price of $180 expiring in September 2026 (collecting a premium of $2.709 million) and selling out-of-the-money put options with a strike price of $170 expiring in March 2027 (collecting a premium of $2.709 million).
The most noteworthy strategy is a simultaneously executed synthetic short: selling out-of-the-money call options with a strike price of $380 expiring in June 2028 (collecting $2.8335 million) and buying out-of-the-money put options with a strike price of $160 and the same expiration date (paying $3.5985 million). The combination resulted in a net outflow of $765,000, aiming to profit from a potential stock price decline with limited cost. Overall, these block trades show a net capital outflow of approximately $4.299 million, indicating an overall sentiment leaning toward defensive bearishness.
Strategy Reference
Given that current implied volatility is at elevated levels and options are relatively expensive, for sellers looking to collect premiums, selecting deep out-of-the-money options (such as puts with strike prices below $170 or calls above $250) carries a relatively lower probability of being exercised. For those unwilling to bear high margin requirements or unlimited risk, strategies like bull put spreads or bear call spreads can be considered to operate within defined risk parameters.
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