Market Overview

U.S. stocks ended lower on Thursday (Dec. 5), with UnitedHealth down sharply and technology shares easing as investors awaited Friday's jobs report.

Regarding the options market, a total volume of 47,286,967 contracts was traded.

Top 10 Option Volumes

Top 10: Tesla, Nvidia, MicroStrategy, Amazon.com, Intel, Bank of America, Palantir, Apple, GameStop, Microsoft

Tesla's stock surged 3% after Bank of America raised its 12-month price target on the stock from $350 to $400. The investment bank cited the company's improving growth prospects as the reason behind the price hike.

There are 2.97 million Tesla Motors option contracts traded on Thursday. Call options account for 65% of overall option trades. Particularly high volume was seen for the $370 strike call option expiring Dec. 6, with 161,446 contracts trading. $TSLA 20241206 370.0 CALL$

Unusual Options Activity

SoundHound AI Inc shares soared 31% on Thursday.

The day prior, SoundHound CFO Nitesh Sharan showcased his company's artificial intelligence-powered, conversational voice products at the UBS Global AI and Technology conference.

The Santa Clara, Calif.-based company also announced a new deal with Torchy's Tacos today, which are rolling out SoundHound's voice AI Smart Ordering product at its 130 restaurant locations.

There are 506.04K SoundHound AI Inc option contracts traded on Thursday. Particularly high volume was seen for the $13 strike call option expiring Dec. 6, with 15,526 contracts trading. The $13 strike call option expiring this Friday surged nearly 1660% on Thursday. $SOUN 20241206 13.0 CALL$

GameStop surged Thursday after the X account of Roaring Kitty, which has 1.6 million followers, posted a new image that has the financial world buzzing.

The picture shows a TIME magazine cover with a computer with a video screen. The video is paused at the 1:09 minute mark, for a total length of 4:20. While 420 is easily recognizable in internet culture, the 1:09 could potentially point to Jan. 9 or something else.

There are 585.38K GameStop option contracts traded on Thursday. Call options account for 84% of overall option trades. Particularly high volume was seen for the $30 strike call option expiring Dec. 6, with 60,220 contracts trading. The $30 strike call option expiring this Friday surged nearly 270% on Thursday. $GME 20241206 30.0 CALL$

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 1,921,652 shares of Unity Software Inc. stock. The largest bullish delta came from buying calls. The largest delta volume came from the 06-Dec-24 Call, with traders getting long 370,777 deltas on the single option contract.

Top 10 bullish stocks: Nikola, SoundHound AI, Tapestry, Unity, Riot Platforms, Mara Holdings, GameStop, BigBear.ai, Johnson & Johnson, D-Wave Systems

Top 10 bearish stocks: Bank of America, Nvidia, Walmart, Amazon.com, AMD, Microsoft, MicroStrategy, Alphabet, SoFi Technologies, Alphabet

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