Option Movers | SPY Put Shows 77% Open Interest Ratio; Nvidia Sees Bearish Sentiment
Wall Street stocks slid on Thursday (Nov 20) in a sharp reversal from an early rally, as technology gains faded after a boost from Nvidia's earnings and U.S. jobs data muddied the labor market outlook.
Regarding the options market, a total volume of 83,272,617 contracts was traded on Thursday, call ratio accounted for 52%.
Top 10 Option Volumes
Top 10: $Nvidia(NVDA)$; $Tesla(TSLA)$; $Palantir(PLTR)$; $AMD(AMD)$; $Meta(Meta)$; $Apple(AAPL)$; $Strategy(MSTR)$; $Amazon(AMZN)$; $Microsoft(MSFT)$; $SoFi(SOFI)$
Source: Tiger Trade App
$Nvidia(NVDA)$ stock initially rose after it reassured investors of strong demand for its advanced data center chips. But the relief dissipated and shares of Nvidia ended 3.2% lower on Thursday.
Nvidia, now valued at some $4.4tn, has led an extraordinary surge in the valuations of AI-related firms in recent months. As firms splurge on chips and data centers in a bid to get a foothold in AI, fears of a bubble have mounted.
While Nvidia’s highly anticipated earnings exceeded expectations as the chipmaker continues to enjoy robust demand, concerns persist around the firms using those chips to invest in AI, spending heavily and driving that demand.
A total number of 6.44 million options related to $Nvidia(NVDA)$ was traded on Thursday, 2.2 times higher than the 90-day average tradng volume. A particularly high open interest was seen for the $480 strike call options expiring Dec. 5, with a total number of 69,558 unclosed options as of Friday.
Market sentiment for NVDA stock is quite bearish on Thursday. Based on option delta volume, traders sold a net equivalent of -1,806,514 shares of stock. The largest bearish delta came from selling calls.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
U.S. stocks fell on jitters over inflated tech stock prices - despite Nvidia's stellar forecasts - resulting in the Nasdaq's widest one-day swing since April 9 when the Trump administration's tariffs spooked markets.
Data showed the U.S. economy added far more jobs than expected in September, but a rise in the unemployment rate and downward revisions to prior months painted a murky picture for the Federal Reserve as it considers its interest rates next month.
The put open interests tied to SPY made up 77% of all outstanding options expiring this Friday, underscoring a notably bearish stance among investors.
Source: Market Chameleon
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: $TSLA(TSLA)$; $DELL(DELL)$; $WMT(WMT)$; $MOH(MOH)$; $DASH(DASH)$; $MDLZ(MDLZ)$; $AMZN(AMZN)$; $T(T)$; $BX(BX)$; $AAPL(AAPL)$
Top 10 bearish stocks: $MSFT(MSFT)$; $COIN(COIN)$; $UNH(UNH)$; $META(META)$; $HOOD(HOOD)$; $NVDA(NVDA)$; $CRM(CRM)$; $PYPL(PYPL)$; $UBER(UBER)$; $HD(HD)$
Source: Market Chameleon
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