U.S. stock indexes closed lower on Wednesday (May 28) as investors digested minutes from the last Federal Reserve meeting and shares of chip designers fell in late trading.
Regarding the options market, a total volume of 38,579,846 contracts was traded on Wednesday, call ratio accounted for 60%.
Top 10 Option Volumes
Top 10: NVDA; TSLA; GME; AAPL; PLTR; U; AMC; MARA; MSTR; AMZN
Source: Tiger Trade App
Nvidia beat quarterly sales expectations as customers stockpiled its AI chips before fresh U.S. curbs on China exports took effect, but the same restrictions will slice off $8 billion in sales from the company's current quarter, forcing the company to offer a forecast below Wall Street estimates on Wednesday.
Shares of the world's most valuable semiconductor firm still rose 5.6% in premarket trading on Thursday (May 28) as investors digested news that the hit in the current fiscal second quarter was not as bad as feared, and Nvidia talked up demand for its new Blackwell chips from customers including Microsoft.
Source: Tiger Trade
A total number of 3.83 million options related to Nvidia was traded on Wednesday before earnings report, up nearly 80% compared with the previous trading day. A particularly high trading volume was seen for the $140 strike call option expiring this Friday, with a total number of 144,001 option contracts traded as of Wednesday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
GameStop shares tumbled nearly 11% on Wednesday as the videogame retailer said in a press release that it had snapped up 4,710 Bitcoins over an unspecified period. The report was light on details, but based on the current price of the cryptocurrency GameStop's holdings are valued at over $5.12 billion.
The poster child for meme stocks indicated earlier this year that it was looking to create a Bitcoin treasury. While the press release Wednesday didn't state the purpose of the crypto purchase, it is almost certainly a first step.
A total number of 631,799 options related to GameStop was traded on Wednesday, 2.7 times higher than the 90-day average trading volume. Bearish options related to GameStop saw big gains on Wednesday. For example, the $31.5 strike put option expiring this Friday soared 219%.
Source: Tiger Trade App
TOP Bullish & Bearish Single Stocks
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.
Top 10 bullish stocks: NVDA; UNH; AMZN; SBUX; INTC; XOM; SMCI; T; EBAY; NKE
Top 10 bearish stocks: GOOG; PG; PCG; NEE; AMD; GOOGL; DIS; MSFT; C; PNC
Source: Market Chameleon
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