Options Market Statistics: Tesla Stock Surges, Options Pop Following Federal Reserve's Interest Rate Cut
News Highlights
$Tesla (TSLA.US)$ shares surged 7.36% Thursday to close at $243.92, with option volume of 2.69 million, and calls accounted for 58.3% of the volume. The $235 calls expiring September 20 were traded most actively.
Tesla's stock surged on Thursday, influenced by the Federal Reserve's decision to cut short-term interest rates by 0.5 percentage points. This rate cut, which was more aggressive than anticipated, is expected to benefit high-growth companies like Tesla. Lower interest rates make car financing more affordable, potentially increasing demand for cars and boosting auto stocks. Despite this, General Motors and Ford saw their gains fade, closing slightly down, while Stellantis, Toyota, and Honda experienced better performance.
Tesla's stock tends to be volatile around Fed decisions, often moving more significantly the day after the announcement. Year to date, Tesla's stock had been down about 9% due to declining EV sales, but strong recent sales in China could offset some of these challenges. European car sales showed a decline, particularly in electric vehicles, while Chinese sales appeared robust.
$Meta Platforms (META.US)$ shares climbed 3.93% Thursday to close at $559.10, with option volume of 0.55 million, and calls accounted for 63.6% of the volume.The $550 calls expiring September 20 were traded most actively.
Meta Platforms reached an all-time high stock price, marking an 80% increase over the past year. This surge is attributed to its advancements in social media and virtual reality, reflecting strong investor confidence and potential for future growth. Meta has also committed to environmental sustainability, securing a deal for up to 3.9 million carbon offset credits to achieve net-zero emissions by 2030. Additionally, Meta extended its partnership with EssilorLuxottica to develop smart eyewear, resulting in two generations of Ray-Ban branded smart glasses.
$SoFi Technologies (SOFI.US)$ shares rose 0.99% Thursday to close at $8.19, with option volume of 0.28 million, and calls accounted for 77.7% of the volume.The $8.5 calls expiring September 20 were traded most actively.
The Federal Reserve's recent half-percentage-point interest rate cut could significantly benefit SoFi Technologies, whose stock has struggled under high rates, trading below $10 and down over 17% year-to-date. Despite this, SoFi reported strong financials with a 22% year-over-year revenue increase to nearly $600 million in Q2 and a growing deposit base.
Lower interest rates are expected to boost SoFi's lending division, which makes up 57% of its revenue. The company has also enhanced its business and home equity lending platforms, positioning itself for future growth.
SoFi is diversifying beyond lending into secured products like home equity loans, and its Financial Services segment saw AUM grow 58% year-over-year in Q2. The company is focusing on cross-selling to improve profitability and is innovating in areas like credit cards and "Buy Now, Pay Later" products, setting the stage for sustained growth.
Unusual Stock Options Activity
There was a noteworthy activity in $International Flavors & Fragrances (IFF.US)$, where $110 calls have topped volume to open interest ranking. The highest volume over open interest ratio reaches 283.1x with 28,308 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
Options Newsman
Moomoo News Official Account
Empower your trading with options news and insights. Stay informed, make better decision, trade wiser. Not an advisor
17KFollowers
14Following
41KVisitors
Follow
身骑白马 : good
103290597 : hi
Sean Parker : good info, thank you!