Market Overview
The Nasdaq led Wall Street lower on Wednesday (July 22) with a mixed performance from technology stocks, as investors waited for key earnings reports to gauge the health of a market rally fed by enthusiasm for artificial intelligence.
Regarding the options market, a total volume of 50,134,663 contracts was traded, of which 57% were call options.
Top 10 Option Volumes
Top 10: NVDA, AAPL, TSLA, AMZN, MU, SMCI, SPCX, MSFT, VIX, INTC
Source: Tiger Trade app
SpaceX declined 6.7% on Wednesday. The prior session's rebound that ended a seven-day losing streak lasted only one day before the stock resumed its downward trajectory. Multiple headwinds continue to suppress the stock. A massive lock-up expiration of approximately 911.5 million insider-held shares — valued at roughly $116 billion — is set to unlock on August 6, representing the largest single batch of new tradable supply since the company's IPO. Additionally, AT&T's CEO publicly dismissed SpaceX's Starlink as a competitive threat, stating that new entrants arrived too late to overcome decades of infrastructure investment, dampening optimism around Starlink's wireless business prospects. Heavy wait-and-see sentiment prevails ahead of the company's first-ever quarterly earnings report on August 4.
A PUT buy worth $24.93 million was the dominant large trade of the day, with 10,300 contracts purchased at the 115.0 strike expiring on 2027-03-19. With the reference stock price at $115.26, this put was slightly out of the money at the time of execution. The trade carries a clearly bearish tone, as the buyer paid substantial premium for long-dated downside exposure near the current share price, signaling either a directional bet on a meaningful decline in SPCX or a major hedge against future weakness. SPCX 20270319 115.0 PUT
Source: Tiger Trade app
Unusual Options Activity
SUPER MICRO COMPUTER INC rose 19.84% on Wednesday. The company released a preliminary business update, sharply raising its fiscal Q4 gross margin guidance from 8.2%-8.4% to 15%-17%, primarily driven by a favorable customer and product mix. Additionally, new orders for the quarter exceeded $60 billion, with backlog reaching a record high expected to be delivered over the coming quarters.
A same-direction double call sale worth $1.83 million was the largest displayed trade, structured as selling 6,600 Jul. 31, 2026 $32.5 calls and selling 6,600 Jul. 31, 2026 $34.5 calls, with both strikes out of the money versus the $30.56 reference stock price. This is a net credit call combination designed to collect premium, and its strategic intent is consistent with a range-bound to mildly bearish outlook, as the trader benefits most if SMCI stays below the short call strikes or at least does not rally aggressively into expiration. Because both legs are short out-of-the-money calls, the positioning reflects willingness to cap upside exposure in exchange for upfront premium intake rather than a conviction bullish chase. SMCI 20260731 32.5 CALL SMCI 20260731 34.5 CALL
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Risks
Implied volatility typically contracts rapidly after earnings, a phenomenon commonly referred to as IV crush, which can significantly reduce the value of long option positions even if the stock moves in the anticipated direction. In addition, time decay accelerates as options approach expiration. Investors should carefully assess the risk profile of any options strategy before establishing positions.
Disclaimer: This analysis is based on publicly available market data and is provided for informational purposes only. It does not constitute investment advice. Options trading involves substantial risk, and investors may lose more than their initial investment.