TSLA
Tesla
-- 248.710 NVDA
NVIDIA
-- 117.700 MU
Micron Technology
-- 94.720 BA
Boeing
-- 178.110 NKE
Nike
-- 67.940 Trader’s Look at Market – “Tough Market Tests Survivors; Analysis of NVDA option” (3 Feb 2025)
Global markets
$Dow Jones Industrial Average (.DJI.US)$ DJ -0.75%, $S&P 500 Index (.SPX.US)$ S&P500 -0.50%, $NASDAQ 100 Index (.NDX.US)$ Nasdaq -0.28%
US President Trump imposes 25% tariffs on Mexico, Canada, and 10% on China, heightening geopolitical tension and derail global economic growth.
Last week, risk sentiment was dampened by the emergence of China’s DeepSeek AI model. $CBOE Volatility S&P 500 Index (.VIX.US)$ VIX spiked up to 22% before settling down last Friday at 16.4%. The higher the VIX, the worse the risk sentiment.
Malaysia markets
Local Macro
Last Friday, local currency market was thinly traded with shallow market depth. MYR weakened from 4.3945 to 4.4600. $USD/MYR (USDMYR.FX)$ USDMYR almost up 650 pips, following regional peers ( $USD/CNH (USDCNH.FX)$ USDCNH up from 7.24 to 7.32 during CNY break).
KLCI Performance
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ KLCI edged higher at 1,557 (-4.23 point) with lower volume traded, MYR 1.92 billion only.
Malaysia equity flow (MYR million)
Foreigners continued unwinding local equities last Friday at MYR 41 million, sending YTD equity flow to MYR – 3.13 billion. This stoke concern of domestic equity and currency market.
Sectoral performance (%)
Local sectors recouped some of the losses amid lower traded volume and thin liquidity.
Stocks on focus:
$NVIDIA (NVDA.US)$ NVDA develops platform for scientific computing, AI, data science, autonomous vehicles, robotics and 3D applications as well as PC graphics. As of previous closing, NVDA market cap stood at USD 2.94 trillion, P/E of 47 and dividend yield of 0.03%.
Bloomberg source: NVDA graph and volume
Bloomberg source: NVDA target price by analysts
According to Bloomberg survey, market consensus for NVDA is about 174.83 (70 buy call, 1 hold and only 1 sell call by analysts).
Bloomberg source: NVDA option volatility curve
The above table is the implied volatility of NVDA for 1m, 2m, 3m, 6m, 9m and 1 year option. Interestingly, market is pricing in inverted volatility curve for NVDA (highlighted in red circle) whereby 1m vol is about 78%, while 2m at 67%, 3m at 60%, 6m at 54%.
Besides, for 1-month NVDA option (green rectangle), this is inverted curve too whereby market price in more downside than upside. For 80% moneyness, 1m volatility is at 84% while 120% moneyness, 1m volatility is at 76%. It means when option traders want to buy 80% moneyness option, the traders want to buy at 84% volatility while the 120% moneyness option only costs investors 76% volatility.
Based on the option data, it can be concluded that option traders express worry and concern about short-term downside risk and less bullish.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Deals Gap 129 : These guys always leave out the best part... where they sum it all up and make the information clear. Nope, that would lock them in a bias. Just leave it open ended and come back later and say it was so clear.
eNjoys : wow