Market Overview

Wall Street's holiday cheer ended abruptly on Friday (Dec. 27), with all three major indexes closing lower in a broad-based sell-off.

Regarding the options market, a total volume of 47,056,460 contracts was traded.

Top 10 Option Volumes

Top 10: Nvidia, Tesla, Apple, Palantir, AMD, Rigetti Computing, MicroStrategy, Broadcom, Amazon.com, Super Micro Computer

Tesla Motors fell 5% last Friday. Tesla shares will be in focus to start the week after logging two consecutive days of losses, as investors reassess the stock’s extended post-election rally and look ahead to the EV maker’s fourth-quarter deliveries report.

Wall Street predicts the deliveries number, which is expected to be released on Thursday, to come in around 510,000 units, which would represent 10% growth from the prior quarter and a 5% improvement from a year earlier.

There are 3.27 million Tesla Motors option contracts traded on Friday. Call options account for 58% of overall option trades. Particularly high volume was seen for the $430 strike put option expiring Dec. 27, with 165,358 contracts trading.

Unusual Options Activity

Rigetti Computing up 11% on Friday.

At least one Rigetti investor is selling into strength last week. Richard Danis, the company’s former general counsel, has sold 624,262 Rigetti shares this month through Monday, Dec. 23, for $4.7 million, including the sale of 233,423 shares on Monday for $2.6 million, according to a form he filed with the Securities and Exchange Commission. The average price was $11.03 each.

Danis had indicated in a regulatory form that he planned to sell 250,000 Rigetti shares last Thursday for $2.8 million, an average price of $11.

There are 606.33K option contracts traded on Friday, nearly 17 times higher than the 90-day average trading volume. Particularly high volume was seen for the $17 strike call option expiring Dec. 27, 2024, with 41,544 contracts trading.

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 1,024,570 shares of Taiwan Semiconductor Manufacturing stock. The largest bullish delta came from buying calls. The largest delta volume came from the 10-Jan-25 Call, with traders getting long 466,536 deltas on the single option contract.

Top 10 bullish stocks: American Airlines, Comstock Mining, TSMC, Microchip, Quantum-Si, Snow Lake Resources, WiMi Hologram Cloud, Ocean Power, SoundHound AI, Mobileye Global

Top 10 bearish stocks: Apple, Nvidia, Tesla, Amazon.com, Broadcom, Alphabet, Microsoft, Intel, Palantir, Rigetti Computing

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