Key focus.
1, in the past week, it fell by more than 2%, and the volume of options on Friday decreased slightly to 4 million contracts, with a call ratio dropping to 56%; on the open options chain, the call with an expiration date of this Friday and a strike price of $110 was the hottest, with a trading volume and open interest of nearly 0.09 million contracts. $NVIDIA (NVDA.US)$ 2, last week, it rose by more than 21% cumulatively, and the volume of options rose for three consecutive days. The call ratio was 72%. The bullish sentiment on the options chain was strong. The top three trading volumes were: the end-of-day call with a $30 strike price, the call with a $30 strike price expiring this Friday, and the call with a $31 strike price expiring this Friday.
In addition, a major investor bought puts with a $100 strike price and an expiration date of November 15 for more than $3.5 million when the stock price was $104.71.
Recently, the trend of US stocks has been volatile. With the release of heavyweight CPI data this week, market volatility may further intensify.
Last week, the Cboe Volatility Index (VIX) measuring the level of volatility in the S&P 500 reached the highest level since the outbreak of COVID-19 in 2020. According to a Citigroup report, traders expect the S&P 500 to experience at least 1.2% volatility when the CPI report is released on Wednesday. This is consistent with Powell's Jackson Hole speech and Nvidia's earnings announcement.
3, the strong performance continued after the earnings report. The volume of options on Friday surged to 0.3 million contracts, and the call ratio increased again, to around 70%. On the options chain, the call with a $40 strike price expiring this Friday was sought after, with a trading volume of 0.034 million contracts and an open interest of 3,800 contracts. The option recorded a 100% increase on the day. $Palantir (PLTR.US)$
Wedbush analyst Dan Ives said that Palantir signed an agreement with Microsoft last week to provide artificial intelligence services to the defense and intelligence sectors, which could 'change the game' and potentially be a 'launch pad' for Palantir's Artificial Intelligence Platform (AIP). The bank maintained its overweight rating on Palantir and a target price of $38, which is more than 26% higher than the latest closing price. Ives added that although Palantir has been able to develop its federal and enterprise businesses, this deal could increase its momentum in the federal field in the coming years.
Ives added that although Palantir has been able to develop its federal business (as well as its enterprise business), this transaction may increase its "momentum magic" in the federal field in the coming years.
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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