Key focus.

The AI frenzy and expected interest rate cuts fueled the rise!$Amazon (AMZN.US)$The stock price closed up nearly 4%, and the market value surpassed $2 trillion for the first time. Overnight, option trading was 1.53 million contracts, with a put/call ratio of 0.33. In the options chain, the top two in terms of trading volume were calls with a strike price of $195 and $190 expiring tomorrow, with trading volumes of 112,000 and 94,000 contracts, respectively, and open interest of 21,000 and 35,000 contracts.

In addition, multiple call options expiring tomorrow with a strike price of $192.5-$197.5 earned over 7 times the options price.

Due to the strong demand for generated AI workloads seen from the AWS cloud business, the company's growth trends have improved, and investors welcome Amazon's recent cost-cutting measures, which have driven its profit growth in the past few quarters. As for the comprehensive news, Amazon plans to launch a new section on its website that will feature affordable fashion and household items, and allow Chinese sellers to ship directly to American consumers.

Additionally, in its first-quarter results, almost all departments of the company saw revenue growth surpassing Wall Street's expectations, with business revenue growing more than two-fold YoY to a new high of $15.3 billion, a 36% increase from analysts' expectations. Amazon executives also discussed the strong demand for generated AI workloads seen from the AWS cloud business.

2. Focus on chip stocks! Third-quarter results exceeded expectations, but next season's guidance was not optimistic, and after-hours trading fell more than 9%. Overnight, option trading volume increased 2.67 times MoM to 660,000 contracts, and the put/call ratio decreased slightly to 66%. The call options expiring tomorrow with a strike price of $145, $160, $150, and $155 had the largest trading volume.$Micron Technology (MU.US)$7.3 million electric vehicle manufacturer shares surged 23% overnight, reaching a high of over 36% during the trading day. Overnight, option trading volume reached 1.1 million contracts, with a put/call ratio of 0.66. In the options chain, the top two in terms of trading volume were calls with a strike price of $16 expiring tomorrow, with trading volumes of 54,000 and 39,000 contracts, respectively, and open interest of 559 and 8,461 contracts. Among them, the call option with a strike price of $14.5 expiring tomorrow saw its premium rise by 26 times.

Micron Technology predicts that its adjusted revenue for the next quarter ending in August will be in the range of $7.4 billion to $7.8 billion (i.e., $7.6 billion plus or minus $200 million), with a midpoint that essentially meets analysts' expected $7.58 billion. It is estimated that the adjusted EPS for the next quarter will be $1.08 per share plus or minus $0.08, with market expectations at $1.02 per share. The adjusted operating profit margin for the next quarter is expected to be between 33.5% and 35.5%, with market expectations at 34.5%.

In addition, Volkswagen announced recently that it will invest up to $5 billion in auto manufacturer Rivian and said that the two sides will work together to establish a joint venture electric vehicle enterprise to develop next-generation electrification architecture and first-class EV software technology. Some analysts believe that Volkswagen's huge investment is not only a vote of confidence in the continuously loss-making Rivian, but also increases the possibility of deep cooperation on other levels to strengthen the production and sales scale of electric vehicles in the future. $Rivian Automotive (RIVN.US)$Furthermore, another electric vehicle brand's shares surged over 70% overnight, reaching a high of over 110% during the trading day. Overnight, option trading volume reached 290,000 contracts, with a put/call ratio of 0.28. The call with a strike price of $0.5 expiring tomorrow had the highest trading volume, and this option saw its premium rise by nearly 250% yesterday. The put option expiring tomorrow with a strike price of $0.5 had the second highest trading volume.

FFIE and a Middle Eastern partner will strengthen their collaboration plans in the future. Faraday Future announced that the Board of Directors has proposed a reverse stock split to increase the company's stock price in order to reduce the risk of being required to delist on NASDAQ. Meanwhile, Jia Yueting also stated that the influence of Volkswagen's investment in Rivian highlights the huge potential of the American artificial intelligence electric vehicle market and its leading advantages in technology and products, which will release FFIE's potential as soon as possible.

1.8 million kiloliters of the company's overall sales volume were achieved in 2023, which is a significant growth of +28.10% year-on-year. In terms of product structure, the operating income of products priced between 100-300 billion yuan respectively were 401/1288/60 million yuan.

4. In addition, another electric vehicle brand.$Faraday Future Intelligent Electric Inc. (FFIE.US)$Moreover, the shares of another electric vehicle brand surged more than 70% overnight, reaching a high of over 110% during the trading day. Overnight, option trading volume reached 290,000 contracts, with a put/call ratio of 0.28. The call option expiring tomorrow with a strike price of $0.5 had the highest trading volume, followed by the put option with the same expiration and strike price.

The CEO of FFIE previously stated that FFIE and a Middle Eastern partner will strengthen their collaboration plans in the future. Recently, Faraday Future announced that the Board of Directors has proposed a reverse stock split to increase the company's stock price in order to reduce the risk of being required to delist on NASDAQ. Meanwhile, Jia Yueting also stated that the influence of Volkswagen's investment in Rivian highlights the huge potential of the American artificial intelligence electric vehicle market and its leading advantages in technology and products, which will release FFIE's potential as soon as possible.

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.

Editor/ping