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. $NVIDIA (NVDA.US)$ Up 1.53%, the proportion of bearishness slightly increased to 38%. On the options chain, the most traded option is a call option with a strike price of $110 expiring this Friday, with a trading volume of over 0.16 million contracts.
In terms of unusual options activity, a large holder sold a call option expiring on October 18th with a strike price of $109, involving $13.2341 million and bearish on Nvidia.
On Wednesday, Nvidia CEO Jensen Huang will be speaking at the Goldman Sachs conference in San Francisco. Analysts believe that the most significant news at Nvidia's Q2 earnings call is the admission of some issues with the upcoming Blackwell chip design.
Analysts are hoping for more details about the launch of the Blackwell product line, but Nvidia did not provide any, leading to a sharp drop in stock price during Nvidia's earnings call. The market's main concerns are when Blackwell will become Nvidia's new growth engine and whether the demand for AI chips can maintain high growth.
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. $Tesla (TSLA.US)$ Rise 4.58%, with an implied volatility of 70.79%, rising for the sixth consecutive day. In the options chain, the most traded is a call option with a strike price of $225 expiring this Friday, with a trading volume of 0.1445 million contracts.
Tesla saw three bullish large orders last night. At the same time, a large investor bought calls expiring next Friday with a strike price of $185, totaling $15.015 million; in addition, two more orders were placed for calls expiring on October 18th of this year with a strike price of $185, totaling $11.7799 million and $5.0544 million respectively.
Deutsche Bank, which has had a long-term bearish view on Tesla's stock price trend, recently made a rare upgrade to a 'buy' rating and set a target price of $295, indicating a potential increase of about 30.4% from the current level.
Deutsche Bank sees Tesla as a technology platform trying to reshape multiple industries. In the latest report, Deutsche Bank analyst Edison Yu believes that Tesla is more than just a car company, and due to the potential of autonomous driving and humanoid robot businesses, its stock deserves a unique premium. In addition, the energy storage business is emphasized as undergoing a major inflection point in growth and profit margin, and is expected to generate $13 billion in sales by 2025.
$JPMorgan (JPM.US)$ Fell 5.21%, with an implied volatility rising to 74.64%. Options trading volume surged to 0.3336 million contracts.
The three options with the highest trading volume will expire this Friday, with a strike price of $210 for the call option, $200 for the put option, and $205 for the call option.
On the options chain, multiple puts expiring this Friday have earned 10 times the profit.
Morgan Stanley executives issued a warning that Wall Street's expectations for the bank's performance next year are too optimistic, causing a sharp drop in stock price, the largest decline in over four years. Morgan Stanley President Pinto said that analysts' forecast of the bank's next year net interest income (NII) of $89.5 billion is not reasonable and the actual amount will be lower, while the bank's guidance two months ago was about $91 billion. The day before Pinto's speech, Goldman Sachs CEO said that trading revenue for the third quarter is expected to decline 10%.
4. $GameStop (GME.US)$ The stock price fell 3.30%, and investors used options to bet on the financial report. The trading volume increased by 22% compared to the previous trading day. Among the options, the one with the highest trading volume is a call option with a strike price of $30, expiring this Friday.
GameStop saw two large call option orders last night. Specifically, both orders sold puts expiring next Friday with a strike price of $21, with one order involving $0.0945 million and the other order involving $0.0956 million.
GameStop's after-hours trading fell nearly 10%. On the news side, the company announced its second-quarter results for the period ending August 3, with revenue down 31% year-on-year to $0.798 billion, below the market expectation of $0.896 billion. Adjusted earnings per share were $0.04, while the market expected a loss of $0.09 per share. Analysts pointed out that consumers are shifting to playing games online rather than buying them in physical stores, which will drag down GameStop's sales revenue.
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