Market Overview

U.S. stocks gained Wednesday, with all three major indexes registering their biggest daily percentage gains in more than two months, as core inflation data and earnings from major U.S. banks fueled the rally.

Regarding the options market, a total volume of 51,168,736 contracts was traded, up 12% from the previous trading day.

Top 10 Option Volumes

Top 10: Nvidia, Tesla, Apple, AMD, Rigetti Computing, Riot Platforms, MicroStrategy, Meta, Palantir, Amazon

Tesla Motors stock rose 8% on Wednesday as investors weighed everything from a new battle between CEO Elon Musk and the Securities and Exchange Commission to Wall Street price targets to the latest inflation data.

Inflation data played the largest role in the daily move.

There are 2.32 million Tesla Motors option contracts traded on Wednesday. Call options account for 63% of overall option trades. Particularly high volume was seen for the $420 strike call option expiring Jan. 17, with 101,692 contracts trading. The $420 strike call option expiring this Friday surged 328% on Wednesday. $TSLA 20250117 420.0 CALL$

NVIDIA up 3.4% on Wednesday.

There are 2.91 million NVIDIA option contracts traded on Wednesday. Call options account for 64% of overall option trades. Particularly high volume was seen for the $135 strike call option expiring Jan. 17, with 153,444 contracts trading. $NVDA 20250117 135.0 CALL$

Unusual Options Activity

Quantum computing stocks rallied Wednesday following a directive from Microsoft urging businesses to get “quantum-ready” in 2025. Rigetti Computing rose 22%.

There are 532.21K Rigetti Computing option contracts traded on Wednesday, 6.3 times higher of the previous trading day. Call options account for 69% of overall option trades. Particularly high volume was seen for the $15 strike call option expiring Jan 17, 2025, with 32,299 contracts trading. $RGTI 20250117 15.0 CALL$

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 2,541,508 shares of Tesla Motors stock. The largest bullish delta came from buying calls. The largest delta volume came from the 17-Jan-25 Call, with traders getting long 238,734 deltas on the single option contract.

Top 10 bullish stocks: Tesla, Citigroup, Iren, AMC, Rigetti Computing, Quantum Computing, Dollar Tree, CleanSpark, Microsoft, D-Wave Quantum

Top 10 bearish stocks: Zoom, Accenture, Ford, Sunnova Energy, Imperial Petroleum, TAL Education, Wells Fargo, Stitch Fix, Palantir, BlackBerry

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