Daily Options Outlook | The Federal Reserve's interest rate decision will be announced in the early morning; the Big Four will release earnings after the market close; the memory sector surges pre-market

Today's Options Opportunity Preview

On a macro level,The Federal Reserve is set to release its interest rate decision tomorrow morning. The prevailing view expects rates to remain unchanged. The market's main focus is on what signals the last policy meeting chaired by Powell will send and whether the committee formally conveys a hawkish stance that 'rate cuts are essentially off the table.'$Invesco QQQ Trust (QQQ.US)$Yesterday, it fell by 1.01%, while today’s pre-market rose by 0.29%. Options market data shows the put/call ratio for QQQ at 1, with an open interest ratio of 1.56, indicating bearish forces have the upper hand.

On the individual stock level, the four major giants$Alphabet-C (GOOG.US)$$Amazon (AMZN.US)$$Microsoft (MSFT.US)$$Meta Platforms (META.US)$ will simultaneously release earnings after today's market close. Among them, Microsoft rose by 1.04% yesterday but fell 0.56% in pre-market trading today. Option signals show the put/call ratio at 0.44, with IV percentile reaching 100%, reflecting market expectations for significant volatility post-earnings.

$Western Digital (WDC.US)$Pre-market surged by 9.36%, $SanDisk (SNDK.US)$ Pre-market rose by 6.05%. The options market indicates Western Digital’s put/call ratio reached 1.08, with an IV percentile of 98%, showing the market anticipates downside protection due to expectations of a short-term peak.

Review of yesterday’s options

Index Options

On April 28 Eastern Time, trading volume in the U.S. stock index options market increased, totaling 4.77 million contracts traded. The put/call ratio fell to 1.08.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$Option trading volume distribution showed the following characteristics: peak put option trading volume was at 7,000 points, while peak call option trading volume was at 7,200 points.

Single Stock Options

$Apple (AAPL.US)$Closed up by 1.16%, with 716,200 option contracts traded, and the put/call volume ratio dropped to 0.35. Apple is scheduled to release its fiscal Q2 2026 earnings report on April 30, with the market expecting revenue of $109.5 billion, while the iPhone 17 series has encountered a zero-battery false shutdown issue.

$Micron Technology (MU.US)$Closed down by 3.86%, with 421,300 option contracts traded, and the put/call volume ratio fell to 0.69. TD Cowen raised Micron Technology's target price from $550 to $660 and maintained a buy rating.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Intel (INTC.US)$The put/call volume ratio reached a high of 0.90. Intel's stock price fell by 4% due to a sell-off in the semiconductor sector triggered by OpenAI's revenue target miss.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.17.

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

$Navitas Semiconductor (NVTS.US)$Implied volatilityreached a high of 139.14%, decreasing by 8.79% from the previous trading day. Navitas Semiconductor plummeted 17.4% amid AI demand concerns sparked by OpenAI's revenue target miss.

$BigBear.ai Holdings (BBAI.US)$Implied volatility increased the most, reaching 109.63%, up 2.39% from the previous trading day. BigBear.ai shares rose 6.7% against the trend, with active options trading, ahead of its Q1 earnings release on May 5.

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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