Market Overview

The S&P 500 closed slightly higher after flitting between gains and losses during Wednesday (May 14)'s lackluster session as investors waited for the next batch of economic data after a robust start to the week spurred by soft inflation data and a U.S.-China tariff truce.

Regarding the options market, a total volume of 54,333,179 contracts was traded, down 11% from the previous trading day.

Top 10 Option Volumes

Top 10: NVDA, TSLA, SMCI, AMD, MSTR, AAPL, VIX, PLTR, AMZN, GOOG

Source: Tiger Trade App

Nvidia stock jumped over 4% Wednesday, part of a 15% rally over the past five days that has put the AI chip giant's stock back in positive territory for the year.

The gains come as US chipmakers, including Nvidia, announced billions of dollars' worth of deals with Saudi Arabia during an investment forum attended by President Trump on Tuesday.

There are 4.67 million Nvidia option contracts traded on Wednesday, down 22% from the previous trading day. Call options account for 68% of overall option trades. Particularly high volume was seen for the $135 strike call option expiring May 16, with 284,306 contracts trading. NVDA 20250516 135.0 CALL

Tesla stock closed higher 4.1% on Wednesday on reports that the company's board is once again exploring how to compensate CEO Elon Musk.

Per the Financial Times, Tesla's board has formed a special committee to explore a new pay package for Musk, with stock options potentially on the table. The Financial Times said the special committee is made up of chair Robyn Denholm and board member Kathleen Wilson-Thompson. The committee will also explore "alternative ways" to compensate Musk for past work should Tesla fail to reinstate Musk's prior 2018 pay package, which is on appeal with the Delaware Supreme Court.

There are 3.05 million Tesla option contracts traded on Wednesday, down 5% from the previous trading day. Call options account for 67% of overall option trades. Particularly high volume was seen for the $350 strike call option expiring May 16, with 196,123 contracts trading. TSLA 20250516 350.0 CALL

Unusual Options Activity

Source: Market Chameleon

Super Micro Computer shares jumped another 15.7% on Wednesday as it entered a multi-year partnership agreement with Saudi Arabia-based data center company.

The deal, valued at $20B, is expected to “fast-track delivery of ultra-dense GPU platforms and rack systems for DataVolt’s hyperscale AI campuses in the Kingdom of Saudi Arabia and the U.S.", the company said in a statement on Tuesday.

There are 1.43 million Super Micro option contracts traded on Wednesday, up 48% from the previous trading day. Call options account for 75% of overall option trades. Particularly high volume was seen for the $50 strike call option expiring May 16, with 101,661 contracts trading. The price of $50 is 11% higher than Super Micro's Wednesday closing price of $45. SMCI 20250516 50.0 CALL

Semiconductor manufacturer AMD announced a $6 billion share buyback program, pushing the chip stock higher by 4.7% on Wednesday.

There are 1.34 million AMD option contracts traded on Wednesday, up 85% from the previous trading day. Call options account for 74% of overall option trades. Particularly high volume was seen for the $125 strike call option expiring May 16, with 109,250 contracts trading. AMD 20250516 125.0 CALL

TOP 10 S&P 500 Bullish & Bearish

This report shows stocks with the highest volume of bullish and bearish activity by option delta volume, which converts option volume to an equivalent stock volume (bought or sold).

If we take the total positive option delta volume and subtract the total negative option delta volume, we will get the net imbalance. If the net imbalance is positive, there is more bullish pressure. If the net is negative, there is more bearish pressure.

Based on option delta volume, traders bought a net equivalent of 1,321,249 shares of stock. The largest bullish delta came from buying calls. The largest delta volume came from the 16-May-25 120 Call, with traders getting long 328,635 deltas on the single option contract. NVDA 20250516 120.0 CALL

Top 10 bullish stocks: NVDA, SMCI, PLTR, NKE, WBA, WMT, CMG, SCHW, UNH, KKR

Top 10 bearish stocks: GOOGL, INTC, GOOG, PFE, XOM, MU, MSFT, AMZN, BA; AMD

Source: Market Chameleon

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