Daily Options Outlook | Qualcomm remains strong in pre-market trading; IREN rises over 10% pre-market; Market focuses on tonight's Non-Farm Payroll data

Today's Options Opportunity Preview

On a macro level, tonight's Non-Farm Payroll report is the key volatility driver for the entire market. Following hawkish comments from three regional Federal Reserve presidents, the trading significance of tonight’s Non-Farm Payroll report has been further amplified. The schedule from the U.S. Bureau of Labor Statistics shows that the April Non-Farm Payroll report will be released at 8:30 AM Eastern Time on May 8th, which is 8:30 PM Beijing Time tonight. The market currently expects an increase of approximately 62,000 new jobs, significantly lower than March’s 178,000. The unemployment rate is expected to remain at 4.3%, and average hourly earnings are projected to rise by 0.3% month-over-month. This set of data will directly impact how the market prices the Federal Reserve’s subsequent policy path. If employment and wage data come in stronger than expected, U.S. Treasury yields may continue to rise, putting pressure on growth stocks and highly valued AI-related sectors. If the Non-Farm Payroll report comes in weaker, the market may reprice expectations for interest rate cuts.

$Qualcomm (QCOM.US)$ Remains strong in pre-market trading, Following the Q2 earnings report at the end of April, which showed automotive chips (+38%) and IoT (+9%) exceeding expectations, market sentiment has been further fueled by a significant development – the signing of a multi-generational custom chip contract with an unnamed hyperscale cloud provider (first shipments scheduled for December 2026). Speculation suggests it could be one of Microsoft, Google, or Amazon, prompting a reevaluation of Qualcomm's valuation in the context of AI data center expansion. Signals from the options market indicate extreme short-term optimism, with implied volatility at an extremely high level, but multiple indicators have already signaled overbought and overheated conditions.

$IREN Ltd (IREN.US)$ Driven by NVIDIA's AI infrastructure investments and cloud computing contract news, the stock surged more than 10% pre-market, making it one of the most notable elastic plays within the computational power supply chain. $NVIDIA (NVDA.US)$ A $2.1 billion investment in IREN and the signing of a $3.4 billion cloud computing contract have prompted investors to reassess the speed at which IREN is transitioning from cryptocurrency mining and power resources to AI data center assets.$CoreWeave (CRWV.US)$ In pre-market trading, shares fell nearly 5%. After IREN secured investment from NVIDIA and a major cloud computing contract, some capital reallocated AI computational demand towards newly favored beneficiaries, while CRWV faced pressure from relative valuation and competitive dynamics.

IREN’s option signals are clearly overheated. Total option volume reached 441,900 contracts, with a put/call ratio of 0.51, indicating bullish option trades dominate. The current implied volatility (IV) stands at 122.24%, with an IV percentile of 80%, suggesting the market has priced in significant volatility. For today’s trading, IREN behaves more like a highly elastic event-driven stock, following the AI infrastructure narrative, but option costs are already elevated. It will be crucial to monitor whether the stock can maintain strength after high volume and whether IV retreats after an initial spike at the open.

$Cloudflare (NET.US)$ The stock dropped 15.81% pre-market to $216.20, directly triggered by a 20% workforce reduction and weaker-than-expected guidance. Cloudflare, as a high-valuation software stock, was originally expected to demonstrate resilient growth tied to AI traffic narratives. However, once the company signaled both cost adjustments and slowing growth, its valuation and earnings expectations were simultaneously downgraded.

NET’s option signals also reflect heightened volatility expectations. Total option volume hit 77,000 contracts, with a put/call ratio of 0.85, showing no extreme bearishness but clear defensive and hedging demand. Current IV is 77.65%, with an IV percentile reaching 93%, indicating the market has fully priced in large post-earnings/guidance volatility. The key focus today is whether the stock can hold above pre-market lows after the open; if prices break below critical support on high volume, option traders may continue pricing in lowered earnings expectations. If declines narrow quickly, the market might interpret layoffs as cost control measures, potentially leading to a volatile short-term recovery.

Index Options

On May 7 Eastern Time, trading volume in the US index options market declined, with a total of 6.31 million contracts traded. The put/call ratio rose to 1.11.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$ Option volume distribution shows the following characteristics: peak put volume occurred at 7,200 points, while peak call volume was at 7,400 points.

Single Stock Options

$Qualcomm (QCOM.US)$Shares closed up 5.18%, with 548,600 option contracts traded and the put/call volume ratio rising to 0.33. Qualcomm was invited to accompany Trump on a visit to China, and DA Davidson raised its price target to $205.

$Advanced Micro Devices (AMD.US)$Closing down 3.07%, with 653,300 options contracts traded, the put/call volume ratio dropped to 0.69. Citigroup maintained a neutral rating on AMD, raising its target price from $248 to $358.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Intel (INTC.US)$The put/call volume ratio reached the highest at 1.27.

The highest put/call open interest ratio is$Micron Technology (MU.US)$Reaching 1.19. Micron Technology's stock price rose for five consecutive days, as investors heavily purchased put options to hedge against the risk of a pullback in stock prices.

Implied volatility rankings (underlying market cap > $10 billion and options trading volume > 100,000)

$POET Technologies (POET.US)$Implied volatilityImplied volatility increased the most, reaching 143.26%, up 0.56% from the previous trading day. POET Technologies' stock surged 31%, benefiting from the overall rise in the semiconductor sector and easing geopolitical tensions.

$IREN Ltd (IREN.US)$Implied volatility saw the largest increase, reaching 122.24%, up 5.28% from the previous trading day. IREN signed a $3.4 billion AI cloud services contract with NVIDIA and formed a 50-gigawatt strategic partnership.

Risk Warning

An option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility.

Implied volatility reflects the market's expectation of the option's volatility over a certain period in the future. It is derived inversely from the BS pricing model of options and is generally considered an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay higher prices for options to hedge risks, resulting in higher implied volatility.

Traders and investors use implied volatility to assessOption priceto enhance attractiveness, identify potential mispricing, and manage risk exposure.

Disclaimer
This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee of any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses may exceed the initial margin deposited. Even if you set contingent orders such as 'stop-loss' or 'limit' orders, these may not prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account. Therefore, before trading, you should study and understand options and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon exercise and expiration. Options trading carries extremely high risks and is not suitable for all investors. Investors should carefully readCharacteristics and Risks of Standardized Options。

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