Market Overview
Wall Street extended its decline on Friday (July 17) as a pullback on stocks associated with the AI boom, which has driven many of the gains so far this year, morphed into a larger risk-off sentiment.
Regarding the options market, a total volume of 73,246,939 contracts was traded, of which 54% were call options.
Top 10 Option Volumes
Top 10: NVDA, TSLA, AAPL, MU, SPCX, VIX, INTC, $META(META), AMZN, MSFT
Source: Tiger Trade app
NVIDIA fell 2.21% in regular trading on Friday. The company's market capitalization shrank to approximately $4.86 trillion, losing its position as the world's most valuable company to Apple. Shares of the artificial intelligence (AI) leader have been treading water for the past several months, with investors balancing the company's strengths with potential risks. The decline is a reaction to more AI model competition from China.
A PUT buy worth $4.47 million was the largest displayed directional trade, with 2,999 contracts bought on the October 16, 2026 $200.00 put. With NVDA referenced at $202.81, this strike sits slightly out of the money, making it a relatively close-to-spot bearish position with meaningful downside sensitivity if the stock weakens over time. The long-dated tenor suggests more than just a short-term hedge; it looks like a deliberate bearish exposure or protective positioning aimed at a sustained pullback, with the buyer paying premium upfront for downside convexity. NVDA 20261016 200.0 PUT
Source: Tiger Trade app
Unusual Options Activity
Netflix fell 7.26% in regular trading on Friday. The sell-off was triggered by weaker-than-expected Q3 guidance released after the previous session, compounded by a wave of analyst downgrades.
The sharp drop was accompanied by significant bearish options flow, highlighted by a multi-million dollar double-long put package and a substantial bear put spread, indicating strong institutional conviction for further downside.
A directional double-long put package worth $5.23 million was the largest displayed trade, consisting of long 80.0 puts expiring November 20, 2026 and long 81.0 puts expiring August 21, 2026, with 1,900 contracts bought on each leg. With NFLX referenced at $68.95, both strikes were in the money, and the structure was a net debit outlay aimed at capturing a meaningful downside move with strong directional conviction. Because both legs were bought rather than financed by short premium, the trade reflects an aggressive bearish stance that also benefits from elevated downside volatility rather than simple income generation or hedging. NFLX 20261120 80.0 PUT NFLX 20260821 81.0 PUT
Source: Tiger Trade app
Source: Tiger Trade app
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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.