Market Overview

All three major stock indexes closed higher on Wednesday, rebounding from declines earlier in the session as investors brushed off disappointing Alphabet earnings and weighed the prospect of future interest rate cuts from the U.S. Federal Reserve.

Regarding the options market, a total volume of 46,566,194 contracts was traded.

Top 10 Option Volumes

Top 10: Nvidia, AMD, Tesla, Palantir, CBOE Volatility Index, Alphabet, Apple, Uber, Super Micro Computer, Amazon

Advanced Micro Devices shares plunged 6% Wednesday and several analysts dropped their price targets after the chipmaker’s data center sales missed expectations. 

Bank of America analysts said AMD “has not (yet) managed to articulate how it can carve an important niche" relative to Nvidia’s dominance in AI chips.1 The bank cut its price target to $135 from $155 and lowered its 2025 revenue estimate for AMD’s GPUs.

The chipmaker did not provide an AI revenue forecast, but Citi analysts projected AMD’s AI revenue could remain flat or even decline year-over-year in the first half of 2025, which analysts said would be “well below peers.”2 Citi downgraded AMD to “neutral” from “buy” and dropped its price target to $110 from $175. 

Analysts at Mizuho, Jefferies, and UBS also lowered their price targets.

There are 1.86 million Advanced Micro Devices option contracts traded on Wednesday. Call options account for 62% of overall option trades. Particularly high volume was seen for the $110 strike call option expiring Feb. 7, with 77,043 contracts trading.

NVIDIA rose 5% on Wednesday.

There are 3.53 million NVIDIA option contracts traded on Wednesday. Call options account for 65% of overall option trades. Particularly high volume was seen for the $125 strike call option expiring Feb. 7, with 181,712 contracts trading.

Unusual Options Activity

Shares of BigBear.ai Holdings surged 45% Wednesday after the company said it received a contract from the Department of Defense's chief digital and artificial intelligence office to develop its automated learning and forecasting machine, called Virtual Anticipation Network.

There are 301.45K BigBear.ai Holdings option contracts traded on Wednesday. Call options account for 75% of overall option trades. Particularly high volume was seen for the $6 strike call option expiring Feb. 21, 2025, with 46,917 contracts trading. The $6 strike call option expiring Feb. 21 surged 610% on Wednesday.

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 1,263,802 shares of Grab Holdings stock. The largest bullish delta came from buying calls. The largest delta volume came from the 17-Apr-25 Call, with traders getting long 789,307 deltas on the single option contract.

Top 10 bullish stocks: BigBear.ai, Pfizer, Grab, Super Micro Computer, Lyft, Amazon, SEALSQ, Iren, Rigetti Computing, Tempus AI

Top 10 bearish stocks: Ford, AMD, Alphabet, Tesla, Intel, Alphabet, Nio, Meta, Uber, Hims & Hers Health

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