Wall Street's major averages closed slightly lower on Thursday (Mar 27), after spending most of the session making small moves on either side of the flat line.

Regarding the options market, a total volume of 45,705,884 contracts was traded on Thursday.

Top 10 Option Volumes

Top 10: TSLA; NVDA; GME; AMD; AAPL; PLTR; VIX; MSTR; AVGO; NIO

Source: Tiger Trade App

US-listed shares of NIO fell 5.7% on Thursday. NIO announced plans to issue new shares to raise funds after it flagged possible financial stress in its fourth-quarter earnings report.

The electric vehicle (EV) maker announced that it plans to issue up to 118,793,300 class A ordinary shares in offshore transactions outside the US to non-US persons.

The company currently plans to use the net proceeds from the equity placement for research and development of EV technology and new products, further strengthening of the balance sheet and general corporate purposes, NIO said in an announcement.

A total number of 429.26K options related to NIO was traded on Thursday, 2.1 times higher than the 90-day average trading volume. A particularly high trading volume was seen for the $5.5 strike call option expiring April 17, with a total number of 86,226 option contracts traded as of Thursday.

Source: Market Chameleon

Unusual Options Activity

Source: Market Chameleon

AppLovin shares tumbled 20% on Thursday, a record one-day drop, after Muddy Waters issued a short report against the company.

It’s at least the third report from a short seller in about a month. In February, Fuzzy Panda and Culper Research both published short reports against the company, which provides marketing services to app developers, sending shares lower. Those reports came just days after The Bear Cave issued its own cautious piece against AppLovin shares.

AppLovin was one of the top-performing technology stocks in 2024, gaining more than 700% in a meteoric rise driven by the artificial intelligence frenzy. The stock was added to the Nasdaq 100 Index in November, further boosting gains and pushing it to a market valuation of more than $110 billion at the end of the year.

A total number of 220,269 options related to AppLovin was traded on Thursday, of which 57% were put options. Based on option delta volume, traders sold a net equivalent of -250,824 shares of AppLovin stock. The largest bearish delta came from buying puts.

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: HPE; INTC; NVDA; HPQ; AKAM; WFC; MDT; PLTR; T; AMZN

Top 10 bearish stocks: NKE; AAPL; PFE; MRK; CMCSA; F; AVGO; TJX; GM; MSFT

Source: Market Chameleon

Based on option delta volume, traders sold a net equivalent of -782,692 shares of Nike stock. The largest bearish delta came from selling calls.

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