Wall Street's main indexes ended higher on Friday (August 22), with the blue-chip Dow hitting a record closing high, as investors piled into stocks after U.S. Federal Reserve Chair Jerome Powell hinted at a near-term interest-rate cut during his Jackson Hole Symposium speech.
Regarding the options market, a total volume of 70,849,230 contracts was traded on Friday, call ratio accounted for 61%.
Top 10 Option Volumes
Top 10: TSLA; NVDA; OPEN; PLTR; INTC; MSTR; AAPL; NIO; VIX; AMD
Source: Tiger Trade App
Tesla stock soared 6.22% to $340 on Friday, along with most of the market, after Fed chair Jerome Powell spoke in Jackson Hole, Wyo.
Powell’s speech noted weakening labor-market conditions, paving the way for a September interest-rate cut. Lower rates help many businesses, including car makers. Rate cuts make financing vehicle purchases more affordable.
A total number of 3.44 million options related to Tesla was traded on Friday. Based on option delta volume, traders bought a net equivalent of 796,108 shares of Tesla stock. Bullish bets related to TSLA showed big gains. For example, the $340 strike call option expiring this Friday soared 268%.
Source: Tiger Trade App
Intel shares rose 5.5% to $24.8 on Friday. President Donald Trump sealed a deal that give the US government a nearly 10% stake in Intel Corp., part of an unconventional bid to reinvigorate the beleaguered company and boost domestic chip manufacturing.
Under the agreement, the US will receive 433.3 million shares of common stock — representing 9.9% of the fully diluted common shares in Intel — according to a statement from the company. The $8.9 billion investment will be funded by grants from the US Chips and Science Act and Secure Enclave program that had previously been extended but not yet paid, Intel said.
A total number of 1.48 million options related to Intel was traded on Friday, of which 74% were call options. Bullish bets related to INTC showed big gains. For example, the $25 strike call option expiring this Friday soared 132%.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
NIO's U.S.-listed stock rose over 14% to $6.34 on Friday, as investors got excited about the electric-vehicle maker’s new, cheaper SUV. NIO officially unveiled its new ES8 SUV, available for preorder at just 308,800 yuan ($43,000) with a battery subscription plan.
Investors like new models, and appear impressed that the company is selling a higher-end vehicle so cheaply, with Chinese EV makers locked in an aggressive price war to try to offset faltering domestic demand.
A total number of 945,838 options related to NIO was traded on Friday, 6.4 times higher than the 90-day average trading volume. NIO continued to show bullish sentiment after the share price rally. Based on option delta volume, traders bought a net equivalent of 759,307 shares of NIO stock. The largest bullish delta came from buying calls.
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: NVDA; TSLA; PLTR; COIN; BAC; META; CCL; VZ; JPM; BA
Top 10 bearish stocks: INTC; WMT; AMD; SLB; PYPL; GOOGL; WBA; CMG; UNH; OXY
Source: Market Chameleon
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