U.S. stocks jumped on Monday (Oct 20) with finance and technology shares providing much of the upside muscle, as upbeat quarterly earnings results revived risk appetite and investors grew less fearful about regional bank credit quality.
Regarding the options market, a total volume of 52,000,549 contracts was traded on Monday, call ratio accounted for 60%.
Top 10 Option Volumes
Top 10: AAPL; BYND; NVDA; VIX; TSLA; AMD; AMZN; SOFI; INTC; ORCL
Source: Tiger Trade App
Apple stock hit a new record Monday on a report that sales of this year’s iPhone models had started strongly. Shares of the tech giant climbed 3.9%, closing at $262.24 and helping the company surpass Microsoft to become the second largest in the U.S. by market capitalization. Only Nvidia is larger.
The gains came after research firm Counterpoint said late Sunday that the iPhone 17 series outsold the iPhone 16 series by 14% during the first 10 days it was available in China and the U.S., Apple’s two largest markets.
A total number of 1.68 million options related to Apple was traded on Monday, of which 73% were call options. Call options related to AAPL showed huge gains. For example, the $262.5 strike call option expiring Oct 24 soared 498%.
Source: Tiger Trade App
Unusual Options Activity
Source: Market Chameleon
Beyond Meat shares skyrocketed by 127.7% on Monday. The surge was triggered by a coordinated short squeeze, largely initiated on social media platforms such as Reddit and X. Posts highlighted the company as the most shorted stock in the U.S., ripe for a squeeze. By the end of September, 54% of the company's float was sold short.
On Monday, trading volume surged past 1 billion shares, dwarfing the average daily volume of under 20 million. Fueling this frenzy was last week’s announcement of a tender offer by Beyond Meat to exchange shares for convertible senior notes. This move created 316,150,176 new shares, expanding the number of shares outstanding over fourfold.
A total number of 1,479,094 options related to BYND was traded on Monday, 30.8 times higher than the 90-day average trading volume. Market sentiment for Beyond Meat is quite bullish as of Oct 20. Based on option delta volume, traders bought a net equivalent of 3,801,698 shares of stock. The largest bullish delta came from buying calls.
Source: Market Chameleon
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: AAPL; MRNA; INTC; TTD; META; AMD; CRM; WFC; CMG; DAL
Top 10 bearish stocks: KMI; ORCL; PFE; DHR; AMZN; VZ; VST; GM; PLTR; T
Source: Market Chameleon
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