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. $NVIDIA (NVDA.US)$ Fell by 1.66%, with an extended volatility of 55.42%, and the put/call ratio increased from 0.67 to 0.84.
On the options chain, the trading volume of put options has increased. The put option with a strike price of $105 expiring this Friday has traded over 0.18 million contracts and ranks first, followed by the put option with a strike price of $100 expiring this Friday.
There is some differentiation in the trading direction of large accounts, with some selling puts and buying calls to bet on an increase, and others buying puts to hedge for protection. The largest options contract traded yesterday was a call option expiring on January 16, 2026, with a strike price of $100, involving a capital of $6.2 million.
On the news front, it has been reported that the U.S. Department of Justice has issued subpoenas to Nvidia and several other companies, seeking evidence of Nvidia's alleged violation of antitrust laws. However, a representative from Nvidia stated: 'We have inquired with the U.S. Department of Justice and have not received any subpoenas.'
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. $Tesla (TSLA.US)$ Overnight, options trading volume was about 1.7 million contracts, a 27% increase compared to the previous trading day. The put volume significantly increased to 48.3% compared to the previous day.
On the options chain, the call with an exercise price of $220 expiring this Friday had the highest trading volume, with over 0.1 million contracts changing hands. Following that were the puts with exercise prices of $200, $215, and $210, all expiring on the same day.
$United States Steel (X.US)$ Yesterday, with a drop of over 17%, options trading volume surged to 0.2314 million contracts. The implied volatility increased from 60% to 80%, and the put/call ratio decreased from 2.17 to 0.95.
On the options chain, one put option expiring this Friday with a strike price of $30 made a profit of 25 times the investment. The most actively traded option contract was a put option expiring on January 17, 2025, with a strike price of $25, with a trading volume of 0.0139 million contracts.
On the news front, United States Steel announced in December last year that it has accepted a cash acquisition quote from Nippon Steel Corporation of Japan worth nearly $14.9 billion (including debt). White House spokesperson Kirby stated that the President believes United States Steel should be owned by the United States.
4. $NIO Inc (NIO.US)$ The previous day's increase exceeded 2%, with options trading volume surging to 0.2311 million contracts, a 30% increase from the previous trading day, leading to an implied volatility rise to 78.26%, with a call ratio reaching 58.5%. The most traded options on the options chain are the puts with a strike price of $1 expiring on January 16, 2026, followed by calls expiring this Friday with strike prices of $5 and $4.5.
Nio Inc. has already announced its 2024 Q2 performance pre-market today: Revenue was 17.45 billion yuan, a 98.9% year-on-year increase; Adjusted net loss was 4.5352 billion yuan, a 16.7% year-on-year decrease. Nio Inc. expects delivery volume in Q3 2024 to be between 61,000 and 63,000 vehicles, a 10% to 13.7% year-on-year increase; Anticipated Q3 revenue is expected to be between 19.109 billion yuan and 19.669 billion yuan, a 0.2% to 3.2% year-on-year increase. As of the time of publication, Nio Inc.'s pre-market trading in the US has risen by over 5%.
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/Rocky