Options Market Statistics: Traders Purchase Large Volume of Puts on First Republic Bank
U.S. stocks fell on Friday as investors remained on edge about the risk of further bank failures.
News Highlights
$Tesla(TSLA.US$ shares edged lower by 2.17%, with option volume of 2.41 million, and calls accounted for 60.1%. The 190.00 calls expiring Friday lead the flow with a volume of 40,042.
$NVIDIA(NVDA.US$ shares edged higher by 0.72%, with option volume of 1.73 million, and calls accounted for 54.3%. The 270.00 calls expiring Friday lead the flow with a volume of 27,624.
NVIDIA will greatly benefit from the booming interest in artificial intelligence technology such as Chat GPT, especially given its leading position in the AI training market.
-Morgan Stanley said in a note Friday.
The technology company is expected "to be the core hardware enabler" of the large language model trend, which will be reflected in its results in the coming years, analysts Joseph Moore, Scott Fessler, Mason Wayne and Shane Brett said.
$Bank of America(BAC.US$ shares dropped by 3.97%, with option volume of 0.75 million, and calls accounted for 50.3%. The 30.00 calls expiring Friday lead the flow with a volume of 20,293.
Shares of several companies in the broader financial industry, including Bank of America, were trading lower Friday on continued downward momentum in the sector amid volatility and stability concerns following multiple bank failures.
$First Republic Bank(FRC.US$ shares tumbled 32.8% with option volume of 0.60 million, and puts accounted for 62.8%. The 10.00 puts expiring Friday lead the flow with a volume of 24,283.
Shares of First Republic plunged 33% on Friday as analysts said it still faced a dire outlook. The bank has suspended its dividend and borrowed heavily from the Federal Reserve's discount window. Shares of other regional lenders also dropped sharply, with $PacWest Bancorp(PACW.US)$ down 19% and $Zions Bancorp(ZION.US)$ down 6.8%.
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 185x with nearly 84,911 contracts.
Source: Benzinga, Dow Jones, CNBC
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Source: Benzinga, WSJ
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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OptionStrengthViewer : Yea but the market will still be bullish. Regardless of your FUD
Peanny : Bullish sentiment. Crashing imminent .