To The Moon

Market Overview

Wall ‌Street ended mixed on ​Monday (July 27), as investors ​awaited guidance from major technology companies in a busy week for quarterly earnings, while also worrying that stubbornly high oil prices could force the Federal Reserve to raise interest rates.

Regarding the options market, a total volume of 60,766,468 contracts was traded, of which 56% were call options.

Top 10 Option Volumes

Top 10: $NVDA(NVDA)$, $TSLA(TSLA)$, $AAPL(AAPL)$, $MU(MU)$, $INTC(INTC)$, $MSFT(MSFT)$, $AMD(AMD)$, $AMZN(AMZN)$, $SPCX(SPCX)$, $META(META)

Source: Tiger Trade app

$NVIDIA(NVDA)$ fell 4.99% on Monday. The decline was triggered by mounting concerns over the circular nature of the company's massive AI infrastructure financing arrangements. NVIDIA is advancing a new round of AI infrastructure deals potentially exceeding $750 billion in total value, including a $500 billion partnership with SK Group covering AI data centers and next-generation memory chip development, as well as negotiations to provide up to $250 billion in financial guarantees to help OpenAI lease computing power from a U.S. data center project. The company's five-year credit default swap spread recorded its largest single-day increase on record, reflecting heightened credit risk perception.

Overall sentiment across all large trades leaned bullish, with $32.90 million in bullish flow versus $19.08 million in bearish flow, leaving a net bullish difference of $13.82 million. The directional judgment is therefore moderately bullish, as the aggregate flow shows buyers and premium sellers more frequently positioning for stability-to-upside than for a meaningful breakdown.

A synthetic short position worth $8.10 million was one of the largest featured trades, built by buying 3,000 November 20, 2026 $190.0 puts for $4.40 million and selling 3,000 November 20, 2026 $220.0 calls for $3.70 million. With NVDA referenced at $196.51, both legs were out of the money at execution, and the structure represents a bearish directional bet that also functions like stock replacement on the downside. This combination was established for a net debit, reflecting willingness to pay premium to position for weakness over the longer term, with upside capped by the short call and downside exposure gained through the long put. NVDA 20261120 190.0 PUT NVDA 20261120 220.0 CALL

Source: Tiger Trade app

Source: Tiger Trade app

Unusual Options Activity

$SK hynix(SKHY)$ declined 7.47% on Monday. The stock fell further below its July 9 IPO price of $149 per share. The decline was triggered by a massive global memory chip sell-off. The listing of Chinese DRAM maker ChangXin Technology on the Shanghai Stock Exchange intensified market concerns over future DRAM supply competition. Simultaneously, the Korean KOSPI index plunged as much as 7.6%, with SK hynix Korean shares recording their largest-ever single-day drop of up to 30%. Samsung Electronics fell over 8%, and Japan's Kioxia dropped as much as 18%.

A sharp single-day decline in SK hynix shares was accompanied by a surge of complex options activity, headlined by a $15.69 million calendar put spread and a $6.48 million synthetic short, as institutions tilted toward moderately bearish positioning despite relatively cheap option premiums.

A calendar-style put combination worth $15.69 million was one of the day’s standout structures, built through two repeated sets of buying the 135.0 PUTs expiring on 2026-07-31 and selling the 125.0 PUTs expiring on 2026-08-07. With SKHY at $143.02, all four legs were out of the money, and the structure reflects a mixed-term put spread/calendar expression rather than a simple outright downside bet. The long 135 puts in the nearer expiration against short 125 puts in the later expiration suggests a net debit positioning aimed at gaining from a pullback toward the higher strike in the short term while partially financing that exposure by selling lower-strike downside in the following week. Strategically, this looks like a hedging or moderately bearish tactical position, with the trader paying for nearer-term protection while capping some of the extended downside exposure through the later-dated short puts. SKHY 20260731 135.0 PUT SKHY 20260807 125.0 PUT

Source: Tiger Trade app

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Risks

Implied volatility typically contracts rapidly after earnings, a phenomenon commonly referred to as IV crush, which can significantly reduce the value of long option positions even if the stock moves in the anticipated direction. In addition, time decay accelerates as options approach expiration. Investors should carefully assess the risk profile of any options strategy before establishing positions.

Disclaimer: This analysis is based on publicly available market data and is provided for informational purposes only. It does not constitute investment advice. Options trading involves substantial risk, and investors may lose more than their initial investment.