U.S. stocks ended lower on Tuesday, led by a drop in financial shares as comments from JPMorgan executives added to worries about U.S. President Donald Trump's recent proposal for a cap on credit‑card rates.
Regarding the options market, a total volume of 59,572,796 contracts was traded, of which 60% were call options.
Top 10 Option Volumes
Top 10: NVDA, TSLA, INTC, AMD, META, AAPL, NFLX, MSFT, ASST, MSTR
Intel stock gained 7.3% to $47.29 on Tuesday while AMD rose 6.4% to $220.97 after getting upgraded at KeyBanc. It’s set to be a good year for makers of central processing units, analyst John Vinh says. The analyst raised his rating on both Intel and AMD to Overweight.
Intel got a price target of $60 from the KeyBanc analyst. “Our checks indicate Intel is almost sold out for the year in server CPU, and given the strength in demand, the company is considering a 10-15% ASP [average selling price] increase,” Vinh wrote in a research note.
AMD got a price target of $270 from Vinh.The KeyBanc analyst argued AMD’s revenue from server CPUs is set to grow at least 50% this year, with similar price increases to Intel. Meanwhile, sales of its MI355 and MI455 graphics-processing units will lead to annual AI revenue of between $14 billion and $15 billion.
A total number of 738.46K options related to AMD were traded on Tuesday, of which 62% were call options. Call options related to AMD showed huge gains on Tuesday. For example, the $220 strike call options expiring this week soared 466.27%.
Source: Tiger Trade App
Unusual Options Activity
Source: Market Chameleon
Trump's proposed 10% cap on credit-card interest rates would directly hurt financial companies' profits, and top JPMorgan executives including CEO Jamie Dimon warned that Trump's plan would also severely hurt consumers. That extended this week's selloff in financials over the proposal, which Trump made last Friday.
Shares of Visa fell 4.5%, Mastercard dropped 3.8% and the financial sector fell 1.8%, leading declines in the S&P 500. Shares of JPMorgan ended down 4.2%. The bank reported a better-than-expected quarterly profit but also a drop in investment banking fees.
There are 205,823 option contracts related to JPMorgan traded on Tuesday, 2.6 times higher than the 90-day average trading volume. Based on option delta volume, traders sold a net equivalent of -347,135 shares of stock. The largest bearish delta came from selling calls.
Source: Market Chameleon
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.
Based on option delta volume, traders sold a net equivalent of -5,780,234 shares of Microsoft stock. The largest bearish delta came from buying puts.
Top 10 bullish stocks: NOW, ADBE, AAPL, NVDA, T, NFLX, TMUS, UNH, ORCL, INTC
Top 10 bearish stocks: MSFT, COIN, NKE, CRM, PFE, META, TGT, SMCI, TTD; DDOG
Source: Market Chameleon
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