The Nasdaq recovered on Tuesday (Dec. 16) to close higher while the S&P 500 and the Dow closed lower, impacted by declines in healthcare and energy stocks. Investors evaluated delayed economic data to gauge the Federal Reserve's monetary policy outlook for next year.
Regarding the options market, a total volume of 48,676,572 contracts was traded on Tuesday.
Top 10 Option Volumes
Top 10: $Tesla(TSLA)$, $Nvidia(NVDA)$, $Palantir(PLTR)$, $Strategy(MSTR)$, $Apple(AAPL)$, $Broadcom(AVGO)$, $Amazon(AMZN)$, $Netflix(NFLX)$, $Pfizer(PFE)$, $Oracle(ORCL)$
Source: Tiger Trade App
$Tesla(TSLA)$ stock closed at $489.88 on Tuesday, a record and the first close above $480. Shares closed at $479.86 on Dec. 17, 2024.
Robo-taxis have fueled the recent rally. Musk tweeted on Sunday that Tesla was testing robo-taxis without safety monitors in the car. That’s another step on the path to expanding Tesla’s service across the U.S.
“Excitement continues to build for Tesla’s autonomous vehicle and Robotaxi narrative after at least partly achieving removal of safety monitors by year-end,” wrote Barclays analyst Dan Levy on Monday. “Yet key questions remain on roll-out timing/scale.”
A total number of 2.86 million options related to $Tesla(TSLA)$ was traded on Tuesday, of which 65% were call options. A particularly high open interest was seen for the $500 strike call options expiring this week, with a total number of 113,741 unclosed options as of Tuesday.
Source: Market Chameleon
Unusual Options Activity
$Circle(CRCL)$’s stock surged 10% on Tuesday. The US President Donald Trump is set to interview Fed Governor Christopher Waller on Wednesday, for the top Fed job, according to people familiar to that matter, revealed the Wall Street Journal.
Waller, who joined the Fed's Board of Governors following Trump's nomination in 2020, is a supporter of crypto, particularly in stablecoins and DeFi.
"I wanted to send a message that this is a new era for the Federal Reserve in payments — the DeFi industry is not viewed with suspicion or scorn," Waller said during the Fed's Payments Innovation Conference in October. He also said he views stablecoins as "simply a new form of private money" that will coexist with other payment instruments.
A total number of 100,245 options related to $Circle(CRCL)$ were traded on Tuesday, of which 67% were call options. Call options related to Circle showed huge gains on Tuesday. For example, the $82 strike call strike expiring this week soared 239%.
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: $ORCL(ORCL)$, $COIN(COIN)$, $NVDA(NVDA)$, $SMCI(SMCI)$, $PLTR(PLTR)$, $OXY(OXY)$, $CARR(CARR)$, $HOOD(HOOD)$, $UAL(UAL)$, $TSLA(TSLA)$
Top 10 bearish stocks: $MSFT(MSFT)$, $META(META)$, $LUV(LUV)$, $PFE(PFE)$, $NFLX(NFLX)$, $GOOGL(GOOGL)$, $COST(COST)$, $INTC(INTC)$, $CCL(CCL)$, $CMCSA(CMCSA)$
Source: Market Chameleon
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