Market Overview

The three major stock indexes closed higher on Tuesday, aided by energy stocks, while investors saw reason for optimism for a trade breakthrough between the U.S. and China after President Donald Trump delayed tariffs for Canada and Mexico.

Regarding the options market, a total volume of 43,759,334 contracts was traded.

Top 10 Option Volumes

Top 10: Nvidia, Palantir, Tesla, AMD, Apple, PayPal, Uber, CBOE Volatility Index, Snap, Alibaba

Shares of Palantir Technologies Inc. rallied 24% on Tuesday after the company gave a full-year revenue forecast that exceeded analysts’ estimates, thanks to what Chief Executive Officer Alex Karp described as “untamed organic growth” in demand for its artificial intelligence software.

Sales will be about $3.75 billion in 2025, the Denver-based company said Monday in a statement. Adjusted operating income will be about $1.56 billion. Analysts, on average, projected revenue of $3.54 billion and operating profit of $1.37 billion.

There are 2.14 million Palantir Technologies Inc. option contracts traded on Tuesday. Call options account for 55% of overall option trades. Particularly high volume was seen for the $110 strike call option expiring Feb. 7, with 75,424 contracts trading. The $110 strike call option expiring this Friday surged 158% on Tuesday. $PLTR 20250207 110.0 CALL$

Alibaba rose 4% on Tuesday.

There are 398.10K Alibaba option contracts traded on Tuesday. Call options account for 79% of overall option trades. Particularly high volume was seen for the $105 strike call option expiring Feb. 7, with 19,423 contracts trading. $BABA 20250207 105.0 CALL$

Unusual Options Activity

Alphabet said on Tuesday it will spend $75 billion on its AI buildout this year, 29% more than Wall Street expected, and investors signaled disappointment at a missed cloud revenue target and began showing impatience over profitability.

Shares of the Google parent fell 9% in extended trading.

There are 666.29K Alphabet option contracts traded on Tuesday. Call options account for 65% of overall option trades. Particularly high volume was seen for the $220 strike call option expiring Feb. 7, 2025, with 22,468 contracts trading. $GOOGL 20250207 220.0 CALL$

TOP Bullish & Bearish Single Stocks

This report shows stocks with the highest volume of bullish and bearish activity by option delta volume, which converts option volume to an equivalent stock volume (bought or sold).

If we take the total positive option delta volume and subtract the total negative option delta volume, we will get the net imbalance. If the net imbalance is positive, there is more bullish pressure. If the net is negative, there is more bearish pressure.

Based on option delta volume, traders bought a net equivalent of 1,888,192 shares of NVIDIA stock. The largest bullish delta came from buying calls. The largest delta volume came from the 07-Feb-25 Call, with traders getting short 701,507 deltas on the single option contract.

Top 10 bullish stocks: Palantir, Nvidia, Nikola, BigBear.ai, fuboTV, Alphabet, Iren, Beyond, Galapagos, Riot Platforms

Top 10 bearish stocks: PayPal, Pfizer, American Airlines, Grab, Coca-Cola, Pepsi, SoFi Technologies, Enterprise Products Partners, XPeng, Qualcomm

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