U.S. stocks finished lower on Wednesday (Jan 14), led by a drop in the Nasdaq, with technology shares declining as investors moved into more defensive areas, while bank stocks extended recent losses following some mixed quarterly results.
Regarding the options market, a total volume of 61,871,771 contracts was traded, of which 60% were call options.
Top 10 Option Volumes
Top 10: NVDA, TSLA, FCX, MSTR, AAPL, INTC, META, NFLX, MSFT, AMD
Source: Tiger Trade App
Tesla stock fell 1.8% on Wednesday after a surprise announcement from CEO Elon Musk about the company's Full Self-Driving driver assistance product. The move came after Musk announced on his social-media platform, X, that Tesla would stop selling FSD for a one-time payment and go to a subscription-only option.
FSD currently costs $8,000 once or $99 a month. That makes the break-even point between subscription and purchase at 81 months, or almost seven years. If you own a Tesla longer than that and want FSD, a one-time purchase is the better option.
Tesla has hundreds of thousands of FSD subscribers. It didn't respond to a request for comment about the number of users or how they pay. It's likely the majority are monthly subscribers.
A total number of 1.56 million options related to Tesla were traded on Wednesday, of which 60% were call options. Market sentiment for Tesla is quite bearish on Wednesday. Based on option delta volume, traders sold a net equivalent of -91,058 shares of Tesla stock. The largest bearish delta came from selling calls.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
Freeport-Mcmoran stock reached a 52-week high on Wednesday, shares closed at 1.7% higher to $60.35. This achievement underscores a notable 50% increase over the past year, reflecting the company’s robust performance and investor confidence.
The surge in stock price highlights Freeport McMoRan’s strong positioning in the market, driven by favorable commodity prices and strategic operational efficiencies. Trading at a P/E ratio of 41.4, the stock commands a premium valuation despite its $84.27B market cap. As the company continues to capitalize on global demand for copper and gold, its stock’s performance remains a focal point for investors looking for growth in the mining sector.
There were 1,370,003 option contracts related to Freeport-Mcmoran traded on Wednesday, of which call options accounted for 98%.
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.
Top 10 bullish stocks: ORCL, NOW, ADBE, TMUS, MSFT, PG, DDOG, UNH, CSGP, SBUX
Top 10 bearish stocks: META, AAPL, COIN, PLTR, NKE, WBD, CRM, BAC, NFLX; TGT
Source: Market Chameleon
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