Option Movers | This Rigetti Computing Call Soars 527% in One Day; Tesla Sees Bearish Sentiment
Market Overview
The S&P 500 edged higher while the Nasdaq dipped after a volatile session on Tuesday as investors gauged inflation data and braced for quarterly earnings reports to justify stock valuations and the strength of the U.S. economy.
Regarding the options market, a total volume of 45,805,465 contracts was traded.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $CBOE Volatility Index(VIX)$, $AMD(AMD)$, $Rigetti Computing(RGTI)$, $MicroStrategy(MSTR)$, $Meta(META)$, $Palantir(PLTR)$, $GameStop(GME)$
Shares of $Tesla Motors(TSLA)$ fell 2% on Tuesday.
With only days left in the Biden administration, the SEC sued Musk on Tuesday, alleging that he didn’t comply with requirements to notify the agency about his swelling Twitter stake in 2022 — before he went on to purchase more shares, and ultimately the entire company.
There are 2.20 million $Tesla Motors(TSLA)$ option contracts traded on Tuesday. Call options account for 66% of overall option trades. Particularly high volume was seen for the $420 strike call option expiring Jan. 17, with 90,485 contracts trading.
$MicroStrategy(MSTR)$ up 4.2% on Tuesday.
There are 472.78K $MicroStrategy(MSTR)$ option contracts traded on Tuesday. Put options account for 54% of overall option trades. Particularly high volume was seen for the $400 strike call option expiring Jan. 17, with 16,491 contracts trading.
Unusual Options Activity
B. Riley Securities maintained its Buy ratings on $Rigetti Computing(RGTI)$ and $D-Wave Quantum Inc.(QBTS)$ and raised the price targets on the shares, noting that some commercialization concerns are misplaced. Rigetti Computing shares up 48% on Tuesday.
There are 514.63K $Rigetti Computing(RGTI)$ option contracts traded on Tuesday. Call options account for 67% of overall option trades. Particularly high volume was seen for the $8 strike call option expiring Jan 17, 2025, with 43,164 contracts trading. The $8 strike call option expiring this Friday surged 527% on Tuesday.
Analyst Craig Ellis said they believe that despite recent well publicized CEO views on an elongated path to commercialization, a slew of recent and, in some cases, materially underappreciated data points offer broadly encouraging technical advances to significantly boost confidence in quantum's intermediate to long-term high-value workload scalability into areas unreachable to classic CPU and GPU computing, raising the arc of B. Riley's bullish sector thesis in the years ahead.
In addition, equity capital raises amid the fourth quarter of 2024's high-volume share gains significantly ameliorated covered company cash sufficiency concerns, easing a dark multi-year share cloud, the analysts added.
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.
Based on option delta volume, traders sold a net equivalent of -1,677,332 shares of $Tesla Motors(TSLA)$ stock. The largest bearish delta came from selling calls. The largest delta volume came from the 17-Jan-25 Call, with traders getting short 504,008 deltas on the single option contract.
Top 10 bullish stocks: $AbbVie(ABBV)$, $Rigetti Computing(RGTI)$, $Apple(AAPL)$, $PG&E Corp(PCG)$, $Quantum Computing(QUBT)$, $D-Wave Quantum(QBTS)$, $Nvidia(NVDA)$, $Abbott Laboratories(ABT)$, $Applied Digital(APLD)$, $Dollar Tree(DLTR)$
Top 10 bearish stocks: $Riot Platforms(RIOT)$, $Tesla(TSLA)$, $Medical Properties(MPW)$, $NIO(NIO)$, $Freeport-McMoRan(FCX)$, $GameStop(GME)$, $AMD(AMD)$, $American Airlines(AAL)$, $Kinder Morgan(KMI)$, $ChargePoint(CHPT)$
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$(NVDA)$ $(TSLA)$ $(AAPL)$ $(VIX)$ $(AMD)$ $(RGTI)$ $(MSTR)$ $(META)$ $(PLTR)$ $(GME)$Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
