Options Market Statistics: Nvidia Surges for Third Day as Earnings Beat
News Highlights
$NVIDIA(NVDA.US$ shares ended 6.98% higher. Its options trading volume was 2.16 million. Call contracts account for 62.4% of the total trading volume.
Nvidia continues to skyrocket, surging last week above the 1,000 level for the first time last week. Its market cap raced past $2.5 trillion, less than a year after reaching the $1 trillion mark. Shares surged again on Tuesday.
With the artificial intelligence leader continuing to deliver massive earnings and sales growth, Nvidia stock seems headed toward $3 trillion, passing or challenging Apple (AAPL) and Microsoft (MSFT) as the world's most valuable company.
$PDD Holdings(PDD.US$ shares ended 4.98% lower. Its options trading volume was 0.26 million. Call contracts account for 74.2% of the total trading volume. The $170 calls expiring May 31 were traded most actively.
Shares of Temu parent PDD Holdings Inc. are being held back by geopolitical risks and fierce competition in China's e-commerce sector.
Granted, it US-listed stock has surged 43% surge from a March low, but it's still trading at just 13 times expected earnings for the next year. That's half the valuation of the Nasdaq 100, marking PDD's steepest discount on record.
That might seem like a great bargain for a company that more than doubled sales in the latest quarter, a pace of growth second only to Nvidia's on the tech-focused index. Some see the gap as justified given the harsh trade-war rhetoric from Beijing and both candidates in the upcoming US presidential poll.
People are worried about election risks and potential tariffs coming for PDD, leading many to attach zero or even negative value to Temu," said Shuyan Feng, deputy general manager for investment management at Huatai Asset Management (Hong Kong).
$DraftKings(DKNG.US$ shares ended 10.29% lower. Its options trading volume was 0.26 million. Call contracts account for 57.5% of the total trading volume. The $48 calls expiring June 28 were traded most actively.
DraftKings stock fell after the Illinois Senate passed a hike to the state's sports betting tax.
The Senate package is different from a bill already approved by the Illinois House. The two proposals must be reconciled before they can be signed.
The bill hikes the state tax on gross revenue to 40%, trailing only New York's 51% rate. Operators have been paying a 15% tax since sports betting went live there in 2021. Gov. Jay Pritzker had asked for a hike to 35%.
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 121.4x with nearly 20,036 contracts.
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Daily Active Index & Sector ETF Options
Source: Barchart, Unusual Whales, The Guardian, Bloomberg
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