The Dow Jones Industrial Average and S&P 500 closed lower on Wednesday (Sept. 25), pulling back from recent record highs driven by China's sweeping stimulus package, as investors awaited economic indicators and signals on upcoming interest rate cuts.

Regarding the options market, a total volume of 42,817,148 contracts was traded on Wednesday.

Top 10 Option Volumes

Top 10: NVDA; TSLA; AAPL; INTC; MU; META; AMD; AMZN; PLTR; U

Source: Tiger Trade App

Micron shares rallied more than 15% in premarket trading on Thursday. The memory-chip maker forecast higher than expected first-quarter revenue due to the thirst for its memory chips used in artificial intelligence computing.

At the midpoint of its guidance, the memory-chip company anticipates $8.7 billion in revenue for the fiscal first quarter, though its range extends by $200 million in either direction. Analysts tracked by FactSet had been looking for $8.3 billion, and Micron generated just $4.73 billion in revenue for the same period a year prior.

Traders poured into options related to Micron before earnings report. A total number of 569,970 options related to Micron was traded, nearly 3 times higher than the 90-day average trading volume.

Trading volumes of $100 call, $110 call and $120 call options are particularly high, implying sentiment around Micron is quite bullish.

Source: Market Chameleon

Unusual Options Activity

Source: Market Chameleon

Chinese ADRs jumped again in premarket trading Thursday as stimulus rally carried on. YINN rose 13%; KWEB rose 5%; Alibaba and PDD Holdings rose 6%; JD.com, XPeng, Li Auto, and Bilibili rose 7%.

The 24-man Politburo vowed to complete the country’s annual economic goals, the official Xinhua News Agency reported Thursday. Officials said the government needs to ensure necessary fiscal spending and stabilize the real estate market, including strictly limiting the supply of new commercial housing construction.

It also called on the forceful implementation of cuts to interest rates and a reserve requirement ratio for banks, easing measures announced by the People’s Bank of China this week.

Traders poured into options related to Alibaba, NIO, PDD, and JD.com. Market sentiment showed that investors are quite bullish for them.

For example, based on option delta volume, traders bought a net equivalent of 222,836 shares of Alibaba stock.

Source: Market Chameleon

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.

Top 10 bullish stocks: U; CHPT; AUR; UPST; DJT; UAL; DAL; MU; REI; LUNR

Top 10 bearish stocks: AAPL; TSLA; NIO; SOFI; PFE; AAL; JD; NGD; AMZN; BA

Source: Market Chameleon

Based on option delta volume, traders bought a net equivalent of 1,217,621 shares of Unity stock. The largest bullish delta came from buying calls.

The largest delta volume came from the 18-Oct-24 Call, with traders getting long 821,953 deltas on the single option contract.

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