Key focus.

1. The AI race is in a collective frenzy! Leading stocks.$NVIDIA (NVDA.US)$Rising more than 3%, became the "global stock king"; Overnight, 6.02 million options were traded, with a call buy-to-open ratio of 63.2%; The most active on Friday are the call options with a strike price of 135/140/136 dollars, and the option premiums have all risen by about 150%.

Apart from Nvidia, the trading volume of multiple individual stock options surged collectively.$Taiwan Semiconductor (TSM.US)$Closed up over 1% overnight,$Micron Technology (MU.US)$up nearly 4%,$Dell Technologies (DELL.US)$Rising over 5%, the trading volume of the options of these three individual stocks is close to three times the 30-day average trading volume, and the call buy-to-open ratio is about 70%. Among them, the implied volatility of Taiwan Semiconductor and Micron Technology is 51% and 67%, respectively, both at the highest level this year.

One big player bought a call option with a strike price of 165 dollars and an expiration date of August 16th when the stock price of Taiwan Semiconductor was 181.33 dollars, and sold a call option with a strike price of 140 dollars and the same expiration date, involving nearly 400 million dollars.

Currently, stock prices of U.S. chip stocks are high, and options are gradually becoming an alternative investment option for investors. The option strategy taken by the aforementioned big player on Taiwan Semiconductor is a "bear market call spread strategy", which refers to buying a call option with a higher strike price while selling a call option with a lower strike price, with identical underlying and expiration time. Selling the call option earned them a premium income, and buying the call option with a higher exercise price provided them with upward protection. This strategy is suitable for situations where the view on the underlying price is neutral to bearish.

3,$Palantir (PLTR.US)$The stock price has risen continuously in the past three days, and has risen by more than 10% cumulatively. Option trading on Tuesday soared to 620,000 contracts, twice the daily average trading volume, with a call buy-to-open ratio as high as 83%. Multiple calls were snapped up, with the call options with a strike price of 25 and 25.5 dollars expiring on Friday trading volume of about 40,000 contracts and 35,000 contracts, respectively, with open interests of 45,000 contracts and 16,000 contracts.

1. US stock options trading list

2. ETF options trading list.

3. Individual stock implied volatility (IV) ranking.

Risk warning

Options are contracts that give the holder the right to buy or sell an asset at a fixed price on or before a specific date, without any obligation. The price of an option is influenced by various factors, including the current price of the underlying asset, exercise price, expiration time and implied volatility.

Implied volatility reflects the market's expectation for the future volatility of an option, and it is a signal of market sentiment derived from the option pricing model called Black-Scholes (BS). When investors expect greater volatility, they may be willing to pay a higher premium for an option to help hedge risks, thus resulting in a higher implied volatility.

Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricing, and manage risk exposure.

Disclaimer

This content does not constitute an offer, solicitation, recommendation, opinion, or guarantee of any securities, financial products or instruments. The loss risk of buying and selling options could be substantial. In certain circumstances, you may suffer losses exceeding the amount initially deposited as margin. Even if you set up backup instructions, such as stop loss or limit instructions, losses may not be avoided. Market conditions may render such orders impossible to execute. You may be required to deposit additional margin in a very short period of time. If the required amount cannot be provided within the specified time, your open contracts may be closed. However, you are still responsible for any shortfalls in your account arising from this. Therefore, before buying or selling, you should research and understand the options, and consider carefully whether such trading is suitable for you based on your financial situation and investment objectives. If you buy or sell options, you should be familiar with the exercise of options and the procedures at expiration, as well as your rights and obligations when exercising an option or at expiration.

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