Option Movers | Tesla's $475 Call More Than Doubles; iRobot's Trading Volume Soars over 11 Times
Wall Street closed lower on Monday (Dec.15) as investors braced for a slew of economic data later this week while assessing reports on Federal Reserve candidates and commentary from policymakers for clues on the interest rate outlook.
Regarding the options market, a total volume of 59,533,478 contracts was traded on Monday.
Top 10 Option Volumes
Top 10: $Tesla(TSLA)$, $Nvidia(NVDA)$, $Broadcom(AVGO)$, $Apple(AAPL)$, $Strategy(MSTR)$, $Amazon(AMZN)$, $Oracle(ORCL)$, $Netflix(NFLX)$, $Palantir(PLTR)$, $IREN(IREN)$
Tesla shares closed about 3.6% higher at $475.31 on Monday, just shy of the $479.86 level needed to clinch a fresh record close. Wedbush analyst Daniel Ives predicts “a monster year ahead for Tesla and Musk as the autonomous and robotics chapter begins,” he wrote in a note to clients Monday.
While Ives’s $600 target price translates to a $2 trillion valuation for Tesla, he sees a more upbeat scenario where the company could reach a $3 trillion valuation within a year. That growth would mostly come as a result of Tesla’s work on artificial intelligence and self-driving vehicles, which Ives said is worth “at least” $1 trillion.
Tesla CEO Elon Musk said Tesla has started testing aimed at allowing its vehicles in Austin to operate fully autonomously, without that worker. He has previously said that Tesla aims to remove its employees from the cars by the end of the year.
A total number of 2.59 million options related to $Tesla(TSLA)$ were traded on Monday, of which 63% were call options. Call options related to Tesla showed huge gains on Monday. For example, the $475 strike call strike expiring this week soared 100.72%.
Source: Tiger Trade App
Unusual Options Activity
Source: Market Chameleon
Roomba maker $iRobot(IRBT)$ filed for Chapter 11 bankruptcy Sunday and will turn over its business to a pair of Chinese companies and go private, capping a years-long fall from grace. Shares plunged 72.7% on Monday and continued to drop 23% in premarket trading on Tuesday.
The Massachusetts-based company said it had entered a restructuring agreement under which iRobot will be acquired by its primary lender and manufacturer, Shenzhen Picea Robotics Co. and Santrum Hong Kong. Co.
A total number of 164,970 options related to $iRobot(IRBT)$ were traded on Monday, 11.3 times higher than the 90-day average trading volume. Based on option delta volume, traders sold a net equivalent of -310,842 shares of iRobot stock. The largest bearish delta came from buying puts.
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: $TSLA(TSLA)$, $NFLX(NFLX)$, $NVDA(NVDA)$, $MSFT(MSFT)$, $COIN(COIN)$, $ORCL(ORCL)$, $PFE(PFE)$, $META(META)$, $CHTR(CHTR)$, $GOOGL(GOOGL)$
Top 10 bearish stocks: $INTC(INTC)$, $AAPL(AAPL)$, $AVGO(AVGO)$, $TGT(TGT)$, $SLB(SLB)$, $UBER(UBER)$, $HOOD(HOOD)$, $AMZN(AMZN)$, $GOOG(GOOG)$, $EQT(EQT)$
Source: Market Chameleon
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