Options Market Statistics: Apple Stock Drops and Options Pop as Growth Outlook Called Anemic to Negative
News Highlights
$Tesla(TSLA.US$ shares fell by 2.71%, closing at $157.11. Its options trading volume was 2.23 million. Call contracts account for 45.9% of the total trading volume. The most traded calls are contracts of $177.5 strike price that expire on Apr. 19th. The total volume reaches 62,398 with an open interest of 9,857. The most traded puts are contracts of a $170 strike price that expires on Apr. 19th; the volume is 37,948 contracts with an open interest of 47,058.
Companies often see their stock price jump after announcing job cuts, as Wall Street rallies around the prospects for improved efficiency and profits.
But that's not how investors treated the latest news out of Tesla. Shares of the electric vehicle maker dropped almost 6% on Monday and another 2.7% on Tuesday, falling to their lowest since April of last year, after CEO Elon Musk told employees the company is eliminating more than 10% of its global workforce.
There is nothing I hate more, but it must be done," Musk wrote in a memo about the layoffs.
$Apple(AAPL.US$ shares fell by 1.92%, closing at $169.38. Its options trading volume was 1.30 million. Call contracts account for 66.4% of the total trading volume. The most traded calls are contracts of $180 strike price that expire on Apr. 19th. The total volume reaches 150,833 with an open interest of 66,710. The most traded puts are contracts of a $175 strike price that expires on Apr. 19th; the volume is 62,779 contracts with an open interest of 25,988.
Apple stock fell Tuesday after a Wall Street firm lowered its estimates for the company's March quarter following sales-channel checks that showed lower iPhone sales and weakness in China.
Needham analyst Laura Martin cut her estimates for Apple's fiscal second quarter, but maintained her buy rating on Apple stock. She noted that the consumer electronics giant faces significant headwinds.
Apple's anemic and/or negative growth outlook, along with expected cost increases to fund GenAI (generative artificial intelligence), are the biggest gating factors preventing new investors from buying AAPL, based on our conversations," Martin said in a client note.
$AMC Entertainment(AMC.US$ shares rose by 10.12%, closing at $2.72. Its options trading volume was 0.24 million. Call contracts account for 71.8% of the total trading volume. The most traded calls are contracts of $3 strike price that expire on Apr. 19th. The total volume reaches 4,649 with an open interest of 10,495. The most traded puts are contracts of a $2 strike price that expires on June 21st; the volume is 5,659 contracts with an open interest of 24,915.
Last Tuesday, AMC CEO Adam Aron told The Hollywood Reporter that he does not see bankruptcy or restructuring in the company's future.
Personally, I think it's inconceivable that AMC would have to restructure like Regal Cinemas did and file for Chapter 11," Aron said. "One of the things I'm very proud of is that going into the pandemic, AMC was in a very strong position."
Aron's comments followed AMC shares hitting new all-time lows and a $250 million equity distribution program by the company.
Unusual Stock Options Activity
Some notable put activity is being seen in $Warner Bros Discovery(WBD.US$, which is primarily being driven by activity on the May 31 put. Volume on this contract is 125,286 versus open interest of 111.
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Source: Barchart, Unusual Whales, WSJ, Reuters
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