Options Market Statistics: Tesla May Be the 'Original' Meme Stock, But Barclays Warns Latest Surge Has Been 'Too Sharp'
News Highlights
$Tesla (TSLA.US)$ shares fell by 5.46%, closing at $259.46. Its options trading volume is 2.95 million. Call contracts account for 63.9% of the whole trading volume. The most traded calls are contracts of $260 strike price that expire on June 23rd. The total volume reaches 73,995 with an open interest of 14,825.
Tesla's stock has ridden sharply higher on AI and Supercharger optimism, but Barclays pumps the brakes in recent downgrade.
Our experience covering TSLA has made us well aware of the potential for TSLA's stock movements to be driven by more than fundamentals," Barclays' Dan Levy wrote Wednesday. He's "been willing to be more generous" with his stock multiple in the past based on that dynamic, but Tesla shares have run up about 70% from their April bottom -- a surge Levy deemed "too sharp" in the face of "challenging" near-term trends.
He downgraded the stock to equal-weight from overweight in his note to clients, while boosting his price target to $260 from $220.
$NVIDIA (NVDA.US)$ shares fell by 1.74%, closing at $430.45. Its options trading volume is 1.04 million. Call contracts account for 54.8% of the whole trading volume. The most traded calls are contracts of $450 that expire on June 23rd. The total volume reaches 33,831 with an open interest of 17,194. The most traded puts are contracts of a $420 strike price that expires on June 23rd; the volume is 18,841 contracts with an open interest of 2,622.
NVDA declined 1.74% on Wednesday, retracing somewhat after reaching new all-time highs of $440 per share on Tuesday. The price decline had little to do with company-specific factors, but rather with a deterioration in overall market risk sentiment on tech shares, with the Nasdaq 100 falling 1.35% and other tech titans all trading lower for the session.
The daily Nvidia chart is beginning to display a bearish RSI divergence pattern, which might potentially signal a loss of upward momentum and potential reversal in the price trend.
As prices reached new all-time highs on Tuesday, the momentum indicator — the relative strength index or RSI — actually traded lower than previous highs established on May 30. The discrepancy between the rising price trend and the declining oscillator creates a negative divergence signal.
This could suggest the strong bullish momentum may have perhaps peaked, and that investors who have participated, entirely or partially, in the exorbitant 190% year-to-date rally made by Nvidia may be considering taking some profits.
Technically speaking, Nvidia shares continue to trade at extremely elevated levels, as they are about 100% higher than their 200-day moving average and 15% higher than two standard deviations from the 200-day moving average.
$Advanced Micro Devices (AMD.US)$ shares fell by 5.73%, closing at $112.11. Its options trading volume is 0.92 million. Call contracts account for 60.6% of the whole trading volume. The most traded calls are contracts of $120 that expire on June 23rd. The total volume reaches 36,399 with an open interest of 17,954. The most traded puts are contracts of a $110 strike price that expires on June 23rd; the volume is 23,488 contracts with an open interest of 4.814.
AMD today announced plans for continued growth in Ireland through an investment of up to $135 million over four years. The investment is intended to fund several strategic R&D projects through the addition of up to 290 highly skilled engineering and research positions, as well as a broad range of additional support roles.
Unusual Stock Options Activity
Some notable call activity is being seen in $Nikola (NKLA.US)$ which is primarily being driven by activity on the June 30th 1.5 put. Volume on this contract is 52,055 versus open interest of 720, so it's likely that nearly all of the volume represents fresh positioning. Shares of NKLA surge 9.09%.
Daily Active Index & Sector ETF Options
Source: Benzinga, Dow Jones, CNBC
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Source: Benzinga, WSJ
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Nforthemoney : Barclays need to zip it is Wht they need to do
WizIT : Is TSLA loosing its bullish momentum?
72734102 : Tesla shed its Tesla Motor name to be “Tesla” in 2019 for a great reason! Elon is going after MUCH more than dominance in just EV market! A Trillion dollar market exists in the Utility Sector of Tesla alone! Also, $15,000 homes! Pi Phone that is much more impressive than Apple phones! Mega Packs are gonna be huge! AI alone is gonna be Trillion dollar Business for Tesla! Remember Elon gave 100 million to start the AI surge! Tesla is huge on AI! Tesla Bank to Finance is coming! Etc etc Tesla is building a Huge Worldwide Brand! Not just EV which it still leads! 10,000 delivery’s in one day in China !