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. $NVIDIA (NVDA.US)$ On the eve of the performance release, the options trading volume doubled compared to the previous period, reaching 4.48 million contracts, with a call ratio of 61%. On the options chain, the highest trading volume is for calls with expiration on Friday and strike prices of 140 and 130 US dollars respectively. The next highest is for puts with a strike price of 110 US dollars that also expire on the same day, with trading volumes exceeding 0.1 million contracts for both.
A search for the largest single transactions in terms of turnover reveals that a large investor simultaneously placed three orders for options each exceeding 8 million US dollars: one was to sell calls expiring on December 20th of this year with a strike price of 125 US dollars, and another was to sell both put and call options expiring on January 17, 2025 with a strike price of 125 US dollars. This strategy of selling a straddle combination can profit from time decay as long as the market price is not significantly different from the strike price; the highest profit from time decay occurs as the market price approaches the strike price.
Nvidia's revenue in the second quarter hit a record high for a single quarter, exceeding expectations with a 122% increase. The Q3 revenue outlook is expected to increase by up to 83%, higher than the average analyst's expectations but lower than the most optimistic ones, causing its stock price to drop over 8% after hours. In addition, Nvidia also plans to buy back an additional 50 billion US dollars. Huang Renxun stated that the new generation Blackwell chip will begin mass production and shipment in the fourth quarter, and is expected to bring in billions of dollars in revenue during the fourth quarter. At the time of publication, Nvidia's pre-market decline narrowed to 4%.
2. After being shorted by Hindenburg, the release of the performance has been delayed once again. $Super Micro Computer (SMCI.US)$ Overnight, it fell more than 19%, the implied volatility increased by nearly 25%, and it is now reported at 93%; the volume of options transactions doubled compared to the previous day, and the ratio of put options slightly outweighed, with the most active put option being the one with a strike price of $400 expiring on Friday, with a trading volume of 0.0377 million contracts and open interest of 1874 contracts. The option premium for this put option rose the most in yesterday's intraday trading, nearly 70 times, and there were several other put options that made more than 20 times profit.
3. Pet electronic retailer $Chewy (CHWY.US)$ After the earnings report, it rose more than 11%. The volume of options transactions quadrupled compared to normal days, with more than 70% being call options. Due to a sharp decline in implied volatility after the earnings report (IV crush), the option premium for call options decreased, and investors bought on the dip. Among them, the highest trading volumes were for call options with a strike price of $30 and $32 expiring on Friday, with volumes of 0.028 million contracts and 0.018 million contracts respectively, and open interest of 0.014 million contracts and 0.038 million 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.
Editor/new