Key focus.
1,$NVIDIA (NVDA.US)$The implied volatility rose to a new high for the year, with trading volume rising more than twice from the previous day, after a more than 7% decline overnight. Regarding the options chain, bulls and bears are anxious. The highest-volume call order on the options chain is a contract with a strike price of $110 that expires on Friday, reaching 0.235 million contracts, and an open interest of 0.015 million contracts. The highest-volume put order on the options chain is a contract with a strike price of $100 that expires on Friday, reaching 0.168 million contracts, and an open interest of 0.08 million contracts. The premium for the put option exceeded 4 times yesterday.
Apple stated in a technical paper on Monday that two artificial intelligence models that support its AI system, Apple Intelligence, were pre-trained on cloud chips designed by Google. This indicates that, when it comes to training cutting-edge AI, large technology companies are seeking alternatives beyond Nvidia.
It is worth noting that, influenced by AMD's strong financial report, Nvidia rose more than 5% after-hours on the same day of this article's publication date.
2,$Advanced Micro Devices (AMD.US)$The implied volatility has continued to maintain a new high for the year, and the trading volume of pre-earnings options has surged by nearly 1 times from the previous day. Regarding the options chain, the bull forces are strong. The largest-volume call order is a contract with a strike price of $150 that expires on Friday, reaching 0.027 million contracts, with an open interest of nearly 0.01 million contracts, followed by a call order with a strike price of $175 that expires on August 16th.
AMD's second-quarter revenue and profits both slightly exceeded expectations, and the AI revenue of its data center doubled year-on-year, reaching a new high for two consecutive quarters. It is expected that the third-quarter revenue will be from 6.4 billion US dollars to 7 billion US dollars. AMD's management team has raised the sales revenue expected for its data center GPU from $4 billion to $4.5 billion in 2024. As of the publication of this article, AMD rose more than 9% before the market opened.
3. The culprit of the major computer crash may face multiple claims!$CrowdStrike (CRWD.US)$After falling nearly 10% yesterday, the trading volume more than doubled to 0.442 million contracts, with the put-to-call ratio reaching 58.8%. Regarding the options chain, the short sellers occupy the main position. The highest-volume put order is a contract with a strike price of $230 that expires on Friday, reaching 0.02 million contracts, with an open interest of 2,000 contracts.
It is worth noting that one put order with a strike price of $190 that expires on Friday earned 70 times its premium.
According to reports, Delta Air Lines has reportedly hired well-known lawyer David Boies to seek compensation from CrowdStrike and Microsoft for a large-scale network outage that caused an estimated loss of $350 to $500 million to Delta Air Lines.
4.$PayPal (PYPL.US)$After rising more than 8% overnight, the trading volume of option contracts was 0.42 million contracts, four times the 90-day average, with call options accounting for more than 72%. The highest-volume call order with an exercise price of $65 that expires on August 2nd reached 0.036 million contracts, with an open interest of 0.012 million contracts.
The financial report shows that the company's net revenue for the second quarter was $7.89 billion, while the market estimated $7.82 billion. The adjusted operating profit for the second quarter was $1.46 billion, while the market estimated $1.31 billion. The adjusted earnings per share for the second quarter was $1.19, while the market estimated $1.00.
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