Options Market Statistics: Call Options Trade with Bearish Sentiment in Bank Stocks
Major U.S. stock indexes held relatively steady Monday while investors attempted to assess what newfound stress in the banking system would mean for Federal Reserve policy.
News Highlights
$Tesla(TSLA.US$ shares edged higher by 0.60%, with option volume of 2.04 million, and puts accounted for 50.3%. The 170.00 puts expiring Friday lead the flow with a volume of 107,666.
Lache downgraded shares of Tesla on macroeconomic concerns and the fallout from collapsed banks like $SVB Financial(SIVB.US)$, owner of Silicon Valley Bank.
The downgrade comes after Wolfe Research highlighted the strong progress the company had made on costs and demand in a September 2022 upgrade.
We're still convinced of Tesla's improved cost trajectory, which should propel impressive growth over time," Lache said. "However, we've also become incrementally more concerned about macro challenges."
$Bank of America(BAC.US$ shares dropped by 5.81%, with option volume of 1.05 million, and calls accounted for 55.8%. The 30.00 puts expiring Friday lead the flow with a volume of 49,429.
Bank of America stock slumped to a six-day losing streak in very active trading amid broad bank sector weakness.
$Wells Fargo & Co(WFC.US$ shares dropped by 7.13%, with option volume of 0.34 million, quadrupling the average daily volume, and calls accounted for 52.7%.
Odeon Capital downgraded Wells Fargo from Buy to Hold.
$Citigroup(C.US$ shares slipped by 7.45%, with option volume of 0.34 million, quadrupling the average daily volume, and calls accounted for 51.9%
Unusual Stock Options Activity
There was a noteworthy activity in $Charles Schwab(SCHW.US$ , where multiple options have topped volume to open interest ranking. The highest volume over open interest ratio reaches 61x with nearly 7,757 contracts.
Source: Benzinga, Dow Jones, CNBC
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Source: Benzinga, WSJ
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