U.S. stocks ended sharply lower on Tuesday as investors worried the Middle East conflict may persist long enough to ramp up inflation.
Regarding the options market, a total volume of 60,286,087 contracts was traded on Tuesday, of which 54% were call options.
Top 10 Option Volumes
Top 10: NVDA, TSLA, MSFT, AAPL, PLTR, AMZN, NFLX, MU, AMD, SOFI
Shares of Micron Technology pulled back sharply after a strong prior rally, underscoring heightened volatility in AI-linked semiconductor names.
The stock closed Tuesday at $379.68, down roughly 8% on the day, or $32.99 from the previous session. The retreat appears tied to a broader valuation reset in AI memory plays, profit-taking by institutional investors, and weakness across the semiconductor sector.
Investors are closely monitoring supply-demand dynamics and pricing trends for HBM and DDR5 products. Options activity has intensified in recent sessions, with elevated volatility signaling a more cautious near-term tone.
There are 469.23K MU option contracts traded on Tuesday, of which 60% were call options. IV percentile soars to 95.62%, meaning current IV levels exceed roughly 95% of historical readings. The $350 put open interest reaches 9,344 contracts, indicating strong perceived downside support.
Unusual Options Activity
AST SpaceMobile rose 6.6% on Tuesday. TELUS and AST SpaceMobile said Tuesday they have signed a deal to bring space-based cellular broadband service to rural Canada.
Under the deal, TELUS will invest in ground-based satellite infrastructure and become an equity stakeholder in AST SpaceMobile, the companies said.
There are 193,209 ASTS option contracts traded on Tuesday, 1.8 times higher than the 90-day average trading volume. A particularly high volume was seen for the $100 strike call options expiring this Friday, with a total number of 13,971 strike trading as of Tuesday.
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