The S&P 500 and the Nasdaq closed down more than 1% on Friday with investors leaving technology for other sectors as Broadcom and Oracle fueled concerns about an AI bubble and rising U.S. Treasury yields added pressure after some policymakers spoke out against easing monetary policy.
Regarding the options market, a total volume of 59,516,174 contracts was traded on Friday.
Top 10 Option Volumes
Top 10: Tesla, Nvidia, Broadcom, Oracle, Palantir, Apple, Rivian, Merck, Netflix, Strategy
Source: Tiger Trade App
Broadcom closed 11.4% lower at $359.93 on Friday after the chipmaker said its margins would fall due to a higher mix of AI revenue, adding to worries about the payout from AI.
Broadcom's margins will be affected throughout the year by the revenue mix of infrastructure, software and semiconductors, while it has a $73 billion backlog that it anticipates shipping over the next 18 months.
"We attribute the selloff to commentary on gross margin dilution from AI chips. We aren't concerned with this, given that these chips are operating-margin-accretive," said analysts at Morningstar.
A total number of 1.6 million options related to Broadcom were traded on Friday, 6.3 times higher than the 90-day average trading volume. Put options related to Broadcom showed huge gains on Friday. For example, the $360 strike put strike expiring this week soared 198%.
Source: Tiger Trade App
Unusual Options Activity
Source: Market Chameleon
iShares Silver Trust, the largest silver ETF on the U.S. market, showed bullish sentiment on Friday.
Silver has been on a remarkable upward trajectory this year, more than doubling in price since January, consistently hitting new highs, and significantly outperforming gold.
Known as the “devil’s metal,” silver has surged roughly 120% year-to-date, with the latest spot price around $63.7 per ounce. During Friday’s session, it briefly touched a record high of $64.64.
Based on option delta volume, traders bought a net equivalent of 61,098 shares of SLV. 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: Merck, Microsoft, Palantir, BAC, CMG, Apple, Eli Lilly, Adobe, EQT, CCL
Top 10 bearish stocks: MCHP, WBD, AVGO, HOOD, INTC, TSLA, ORCL, NVDA, AMZN, GOOG
Source: Market Chameleon
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