Options Market Statistics: PDD Stock Plummets, Options Pop After Disappointing Q2 Sales
News Highlights
$NVIDIA (NVDA.US)$ shares fell 2.25% Monday to close at $126.46. Its options trading volume was 2.22 million. Call contracts account for 62.7% of the total trading volume.
Semiconductor stocks declined ahead of Nvidia's Q2 earnings report, which is due after markets close on Wednesday. Rising expectations for Nvidia's performance could make it challenging to impress investors. Nvidia shares fell more than 2% on Monday, contributing to a 2.5% drop in the $PHLX Semiconductor Index (.SOX.US)$. Nvidia's significant influence on major indexes means its stock price movements could impact the broader market. Analysts expect Nvidia's revenue and earnings to more than double compared to last year, but high expectations could pose a challenge.
$PDD Holdings (PDD.US)$ shares dropped 28.51% Monday to close at $100. Its options trading volume was 0.81 million. Call contracts account for 54.9% of the total trading volume. The $140 puts expiring Jan. 17 2025 were traded most actively.
PDD Holdings shares tumbled after the company reported Q2 sales of 97.06 billion yuan ($13.63 billion), missing analyst estimates. PDD chairman and co-CEO Lei Chen acknowledged future challenges. PDD's vice president of finance, Jun Liu, noted that revenue growth and profitability will face pressure due to competition and external factors. Earlier, rival $Alibaba (BABA.US)$ also missed earnings estimates amid a weak Chinese economy.
$Apple (AAPL.US)$ shares gained 0.15% Monday to close at $227.18. Its options trading volume was 0.51 million. Call contracts account for 60.4% of the total trading volume. The $230 calls expiring August 30 were traded most actively.
Apple will host a major event on Monday, September 9, at the Steve Jobs Theater in Apple Park, where the iPhone 16 is expected to launch. The event, tagged "It's Glowtime," will be streamed online. The iPhone 16 is anticipated to feature embedded artificial intelligence (AI), building on generative AI tools introduced at Apple's Worldwide Developers Conference in June. These include personalized Genmoji and an enhanced Siri.
Despite these advancements, CFRA Research analyst Angelo Zino predicts a gradual rollout of AI features, with some, like the enhanced Siri, arriving as late as 2025. The iPhone 16 may not represent a significant leap but rather an evolutionary step. Integration of AI could enhance interaction and personalization, especially through Siri, which might leverage OpenAI's ChatGPT-4 model.
The cost of the iPhone 16 remains a key question, with potential price increases due to AI capabilities. Meanwhile, Apple faces challenges such as declining iPhone sales in China and competition from rivals like Samsung, which has also ventured into generative AI.
Unusual Stock Options Activity
There was a noteworthy activity in $PDD Holdings (PDD.US)$, where $95 PUTs have topped volume to open interest ranking. The highest volume over open interest ratio reaches 120.1x with 66,320 contracts.
Daily Active Index & Sector ETF Options
Source: Barchart, Unusual Whales, The Guardian, Bloomberg
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
Comment
Sign in to post a comment
74423696 : Wow , Amazing .
Malik ritduan : ok