Options Market Statistics: Dell Stock Plummets as Earnings Lag AI Sales Growth, Options Pop

Options Newsman joined discussion · May 31 20:29

News Highlights

$NVIDIA(NVDA.US)$ shares ended 0.78% lower. Its options trading volume was 2.47 million. Call contracts account for 55.6% of the total trading volume.

Nvidia stock is trading in a volatile session on Friday as it continues to lead the artificial intelligence race with its advanced chips. CEO Jensen Huang prepares to deliver his opening speech on Sunday at Taiwan's Computex event.

Global chip company CEOs, including Nvidia, $Advanced Micro Devices(AMD.US)$, and $Intel(INTC.US)$, have gathered at the event to discuss the artificial intelligence prospects in the hometown of $Taiwan Semiconductor(TSM.US)$.

Meanwhile, the U.S. has issued a temporary embargo on exporting AI chips to the Middle East, citing national security concerns. The U.S. government is undergoing a review of high-volume sales to the United Arab Emirates and Saudi Arabia. A year ago, the U.S. issued similar restrictions on China. The embargoes are taking a toll on chip companies, including Nvidia and AMD, which have sizable exposure to countries.

$Dell Technologies(DELL.US)$ shares ended 17.87% lower. Its options trading volume was 0.62 million. Call contracts account for 58.4% of the total trading volume.

Shares of Dell Technologies closed down nearly 18% Friday after investors were discouraged by the company's lower-than-expected artificial intelligence server backlog and an estimated decline in margins.

Dell reported fiscal first-quarter results on Thursday that beat analysts' expectations and offered rosy guidance. The company said revenue for the period was $22.24 billion, which was up from the $21.64 billion estimated by analysts according to LSEG.

For its second quarter, Dell said it expects earnings of $1.65 per share, and it expects sales to come in between $23.5 billion and $24.5 billion. Analysts polled by FactSet were expecting $23.35 billion. Dell guided for between $93.5 billion and $97.5 billion in sales for the full fiscal year. The beat wasn't enough to appease investors, and shares tumbled in extended trading Thursday.

$Salesforce(CRM.US)$ shares ended 7.54% higher. Its options trading volume was 0.51 million. Call contracts account for 67.2% of the total trading volume.

Options Market Statistics: Dell Stock Plummets as Earnings Lag AI Sales Growth, Options Pop

Unusual Stock Options Activity

There was a noteworthy activity in $MGM Resorts International(MGM.US)$, where multiple calls have topped volume to open interest ranking. The highest volume over open interest ratio reaches 112.7x with nearly 11,716 contracts.

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Daily Active Index & Sector ETF Options

Source: Barchart, Unusual Whales, The Guardian, Bloomberg

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Option Expiration: Trade Options: Quickstart Guide

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

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