Market Overview
The S&P 500 rallied to a record high close on Friday (Jan 9), lifted by Broadcom and other chipmakers, while a weaker-than-expected jobs report did little to alter expectations of interest rate cuts from the Federal Reserve this year.
Regarding the options market, a total volume of 59,439,508 contracts was traded.
Top 10 Option Volumes
Top 10: TSLA, NVDA, INTC, AAPL, MSTR, NFLX, OPEN, AMZN, PLTR, MU
Source: Tiger Trade App
Intel shares rose nearly 11% on Friday after President Donald Trump posted a flattering message on social media about the chipmaker and its CEO, and championed the government’s investment in the company.
“I just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan,” Trump wrote on Truth Social.
In August, the U.S. government took a 10% stake in Intel through an $8.9 billion investment. That came from CHIPS Act grants that hadn’t been paid and government awards for semiconductor manufacturing.
“The United States Government is proud to be a Shareholder of Intel, and has already made, through its U.S.A. ownership position, Tens of Billions of Dollars for the American People — IN JUST FOUR MONTHS,” Trump wrote. “We made a GREAT Deal, and so did Intel. Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!”
There are 1.51 million Intel option contracts traded on Friday, 2.5 times higher than the 90-day average trading volume. A particularly high open interest was seen for the $50 strike call option expiring this Friday, with 92,990 unclosed contracts as of last Friday.
Source: Market Chameleon
Unusual Options Activity
Source: Market Chameleon
Applied Digital shares rose another 18% last Friday. Applied Digital reported second-quarter revenue above Wall Street estimates on Wednesday, as the data center operator benefited from strong demand for its large-scale facilities for artificial intelligence workloads.
Applied Digital is capitalizing on surging demand for AI infrastructure that is able to provide the massive compute capacity developers need to train and deploy artificial intelligence models.
It reported revenue of $126.6 million for the fiscal second quarter, ended November 30, far exceeding analysts' estimates of $88 million, according to data compiled by LSEG.
Market sentiment for APLD is quite bullsh as of Friday. Based on option delta volume, traders bought a net equivalent of 944,874 shares of stock. The largest bullish delta came from buying calls.
Source: Market Chameleon
TOP 10 S&P 500 Bullish & Bearish
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.
Based on option delta volume, traders sold a net equivalent of 2,868,934 shares of Apple stock. The largest bearish delta came from selling calls.
Top 10 bullish stocks: INTC, MU, SNDK, BA, TSLA, PLTR, AMZN, WMT, LUV, AVGO
Top 10 bearish stocks: AAPL, MSFT, T, NVDA, NFLX, META, CVX, COIN, PYPL; KMI
Source: Market Chameleon
If you are interested in options and you want to:
Share experiences and ideas on options trading.
Read options-related market updates/insights.
Learn more about options trading if you are a beginner in this field.
Please click to join Tiger Options Club