Options Market Statistics: China Stocks Surge on New Economic Stimulus Measures, BABA Options Pop

Options Newsman joined discussion · Sep 27, 2024 09:04

News Highlights

$Micron Technology (MU.US)$ shares surged 14.73% Thursday to close at $109.88, with option volume of 1.19 million, and calls accounted for 70.1% of the volume. The $100 calls expiring September 27 were traded most actively.

Micron shares surged today, driven by strong earnings. Global chipmakers also rallied: SK Hynix rose 9.4% on earnings and new AI chip production, Samsung gained over 4%, Tokyo Electron increased 8% due to AI-related sales forecasts, and ASML climbed over 4%. Micron set its Q1 2025 revenue guidance at $8.7 billion, surpassing analysts' expectations. For Q4 FY2024, Micron reported $7.75 billion in revenue, up 14% from the previous quarter and 93% year-over-year, driven by robust AI demand and strong data center DRAM and NAND sales. CEO Sanjay Mehrotra anticipates record revenue in Q1 FY2025.

Options Market Statistics: China Stocks Surge on New Economic Stimulus Measures, BABA Options Pop

$Alibaba (BABA.US)$ shares surged 10.07% Thursday to close at $105.07, with option volume of 0.89 million, and calls accounted for 74.2% of the volume. The $100 calls expiring October 18 were traded most actively.

China stocks surged on Thursday as Beijing and local governments introduced new economic stimulus measures. Major Chinese stock indexes are up over 10% for the week, with U.S. listings for Alibaba, JD.com, and Nio also gaining. Global companies like Caterpillar, Freeport-McMoRan, and Alcoa rallied as China's stimulus boosted commodity prices. Measures include living allowances, cash handouts to the poor, and 500 million yuan in consumption vouchers in Shanghai. Beijing plans to recapitalize six major state banks with approximately $142 billion.

$Super Micro Computer (SMCI.US)$ shares tumbled 12.17% Thursday to close at $402.40, with option volume of 0.62 million, and calls accounted for 47.4% of the volume. The $500 calls expiring September 27 were traded most actively.

Supermicro shares plummeted on Thursday following a report that the Justice Department is investigating the company for alleged accounting irregularities. The probe began after Hindenburg Research accused Supermicro of accounting manipulation and other issues in August. The company also delayed filing its annual report, citing the need for more time to assess internal controls. SMCI stock has dropped more than 30% since late August, hitting an eight-month low, with its Relative Strength Rating falling from 99 to 27 over three months.

Unusual Stock Options Activity

There was a noteworthy activity in $PDD Holdings (PDD.US)$, where $135 calls have topped volume to open interest ranking. The highest volume over open interest ratio reaches 148.8x with 16,516 contracts.

Daily Active Index & Sector ETF Options

Source: Barchart, Unusual Whales, The Guardian, Bloomberg

BloombergOption Volume: [Options Notes]Measuring liquidity: two key indicators to check

Open Interest: Open Interest Analysis: How to potentially grasp the market's capital flow?

Call/Put Option: Trade Options: Quickstart Guide

Option Expiration: Trade Options: Quickstart Guide

Implied Volatility Rank: Volatility Analysis: IV, HV, IV Rank, IV Percentile

Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including i potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more