The S&P 500 ended higher on Tuesday (August 26), lifted by Nvidia and Eli Lilly, while U.S. President Donald Trump's decision to fire a central bank governor deepened concerns about the Federal Reserve's independence.
Regarding the options market, a total volume of 38,971,048 contracts was traded on Monday, call ratio accounted for 62%.
Top 10 Option Volumes
Top 10: NVDA; TSLA; OPEN; PLTR; AMD; NIO; AAPL; SOFI; INTC; MSFT
Source: Tiger Trade App
Nio shares jumped 10% on Tuesday. JPMorgan upgraded Nio’s U.S.-listed shares to ‘Overweight’ from ‘Neutral’ and added the stock to its ‘Positive Catalyst Watch’ list, citing several potential drivers into year-end.
In a new research note, the analyst Nick Lai lifted the price target to $8.00 from $4.80. The bank highlighted three events it expects to support the stock including Nio’s second-quarter earnings results scheduled to be reported next week, on September 2.
Additionally, JPMorgan cited the final purchase pricing of the third-generation ES8 SUV and the company’s annual Nio Day on September 20.
A total number of 556.72K options related to NIO was traded on Tuesday, 3.5 times higher than the 90-day average trading volume. A particularly high volume was seen for the $9 strike call options expiring September 19, with a total number of 54,893 contracts trading as of Tuesday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
Eli Lilly shares rose nearly 6% as it said on Tuesday its experimental GLP-1 pill helped overweight adults with type 2 diabetes shed 10.5% of body weight in a late-stage trial, after recent data from another study of the drug in patients without diabetes sent company shares tumbling.
Lilly views the pill as a promising alternative to injections that can be made at "extraordinary scale," said Kenneth Custer, president of the cardiometabolic health division for the Indianapolis-based drugmaker.
A total number of 151,677 options related to LLY was traded on Tuesday, 2.3 times higher than the 90-day average trading volume. Based on option delta volume, traders bought a net equivalent of 305,900 shares of Eli Lilly 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: AAPL; LLY; MRNA; PG; PSKY; WBD; AVGO; NVDA; MOS; PLTR
Top 10 bearish stocks: PFE; WBA; AMD; UPS; GOOG; CMG; CNC; FCX; INTC; AMAT
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club