Options Market Statistics: Nvidia Hits New Milestones and Breaks Through $130, Options Pop

Options Newsman joined discussion · Jun 15, 2024 09:35

News Highlights

$NVIDIA (NVDA.US)$ shares ended 1.75% higher. Its options trading volume was 7.96 million. Call contracts account for 61.0% of the total trading volume. The $130 calls expiring June 14 were traded most actively.

In the first week following its stock split, Nvidia set new highs for three consecutive trading days, buoyed by the AI boom and unexpectedly slowing inflation data. The stock closed at $131.88 on Friday, having reached an intraday high of $132.84.

Despite Nvidia's stock is currently trading above the average price target of $129.60 set by Wall Street analysts, some analysts remain bullish on the stock. Rick Schafer of Oppenheimer reiterated a $150 price target based on the company's sustained top-line growth in generative AI, data center/AI accelerators, and autonomous vehicles. Positive earnings reports from companies benefiting from the AI boom have kept confidence high in demand for Nvidia's chips. Additionally, there is speculation that Nvidia's weighting in the $70 billion Technology Select Sector SPDR ETF will increase, potentially triggering an increasing allocation.

Options Market Statistics: Nvidia Hits New Milestones and Breaks Through $130, Options Pop

$GameStop (GME.US)$ shares ended 1.44% lower. Its options trading volume was 1.21million. Call contracts account for 71.9% of the total trading volume. The $30 calls expiring June 14 were traded most actively.

Analysts suggested that Gill may have exercised certain call options in GameStop and sold some of them to raise funds for increasing his stake. On Thursday, in a Reddit update, the trader who goes by the online aliases "Roaring Kitty" and "DeepF-kingValue" disclosed that he had sold some of his 120,000 call options, which were set to expire on June 21, while simultaneously purchasing an additional 4,001,000 GameStop shares. This move has increased his position in the company to 9,001,000 shares, up from 5,000,000 earlier this week. Based on the latest share count per corporate filings, Gill's newly expanded position now makes him the fourth-largest shareholder in GameStop, with a 2.1% stake.

In addition, GameStop's annual shareholder meeting, originally scheduled for this Thursday, was postponed to 11:30 a.m. on June 17 due to tens of thousands of people flocking to Twitch, YouTube and X channels, as well as personal chat rooms of small investors, resulting in the company's website crashing several times.

$Arm Holdings (ARM.US)$ shares ended 0.10% lower. Its options trading volume was 0.41 million. Call contracts account for 64.7% of the total trading volume. The $170 calls expiring June 14 were traded most actively.

Unusual Stock Options Activity

There was a noteworthy activity in $NVIDIA (NVDA.US)$ , where multiple puts have topped volume to open interest ranking. The highest volume over open interest ratio reaches 126.9x with 144,829 contracts.

Daily Active Index & Sector ETF Options

Source: Barchart, Unusual Whales, The Guardian, Bloomberg

Having trouble understanding the concepts of options trading? Check out these beginner-friendly guides:

Option 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

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