The S&P 500 and Dow registered record closing highs on Monday (Jan 12), with shares of technology companies and retailer Walmart gaining and as investors mostly brushed aside concerns about the U.S. Justice Department's criminal investigation of Federal Reserve Chair Jerome Powell.
Regarding the options market, a total volume of 59,561,210 contracts was traded, of which 60% were call options.
Top 10 Option Volumes
Top 10: NVDA, TSLA, AAPL, BABA, NFLX, AMZN, VIX, PLTR, MSTR, ORCL
Source: Tiger Trade App
Alphabet stock joined the club of companies with a market capitalization of more than $4 trillion. It was the stock’s first time above that threshold.
Alphabet stock rose 1% on Monday to $331.86. News that the parent of Google has formed an artificial- intelligence partnership with Apple appeared to be behind the gain. Apple and Google said in a joint statement that the next generation of Apple Foundation Models will be based on Google’s Gemini models and cloud technology.
A total number of 361,488 options related to Alphabet were traded on Monday, of which 70% were call options. A particularly high trading volume was seen for the $330 strike call option expiring this Friday, with a total number of 25,972 call options trading on Monday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
Alibaba stock closed over 10% higher on Monday. Alibaba Cloud’s flagship Qwen family of artificial intelligence models surpassed 700 million downloads as of January on the developer platform Hugging Face, which made it the world’s most widely used open-source AI system.
According to research published on Friday by consultancy AIBase, citing data from Hugging Face, estimated Qwen downloads as of December alone exceeded the combined total of the next eight most popular models on the platform globally, including those from Meta Platforms and OpenAI, as well as Chinese firms Zhipu AI, Moonshot AI and MiniMax.
There are 808.4K option contracts related to Alibaba traded on Monday, of which 68% were call options. Call options related to Alibaba showed huge gains on Monday. For example, the $165 strike call options expiring this week soared 1137%.
Source: Tiger Trade App
TOP 10 S&P 500 Bullish & Bearish
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.
Based on option delta volume, traders sold a net equivalent of -2,399,618 shares of Microsoft stock. The largest bearish delta came from buying puts.
Top 10 bullish stocks: NFLX, AAPL, ORCL, COIN, META, NVDA, TSLA, LULU, TGT, IVZ
Top 10 bearish stocks: MSFT, NOW, AMD, NKE, INTU, TMUS, AMZN, CCL, QCOM; WBD
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