Daily Options Outlook | ARM Under Pressure After Earnings; DoorDash Rises Over 10% in Pre-Market; Disagreement Emerges on SanDisk's High Position

Today's Options Opportunity Preview

$Arm Holdings (ARM.US)$ The stock price fell more than 6% in pre-market trading. The latest quarterly revenue and the next quarter’s revenue guidance were both slightly above market expectations, so at first glance, the earnings report wasn't bad. However, during the conference call, management mentioned that the new AGI CPU still faces uncertainties related to supply chains and costs, causing the market to quickly shift its focus from 'new products opening incremental space' to 'execution difficulty of new businesses and profitability quality.' For a stock like ARM, which had significant prior gains and was already not cheaply valued, doubts about execution often trigger short-term profit-taking more easily than single-quarter data.

$DoorDash (DASH.US)$ The stock price rose 10.20% in pre-market trading. Adjusted earnings per share for the first quarter were 42 cents, higher than the market expectation of 36 cents. The guidance for the second-quarter Marketplace total order value is between $32.4 billion and $33.4 billion, also surpassing market expectations of $31.8 billion, indicating resilience in delivery demand and platform activity.

Meanwhile, the company had previously introduced a fuel subsidy program for U.S. drivers due to soaring oil prices, with cost pressures exceeding $50 million. With oil prices now falling rapidly, the market has begun adjusting its expectations for the company’s cost situation accordingly. The most prominent feature in the options market is the extremely high volatility expectation, with implied volatility reaching the 94th percentile.

$SanDisk (SNDK.US)$ The stock fell more than 3% in pre-market trading. Last week, the company delivered a very strong quarterly performance, significantly surpassing market expectations. In addition, the company signed multiple long-term supply agreements and announced a $6 billion share repurchase plan.

After consecutive large gains, the options signals are showing contradictions. On one hand, the put-to-call ratio has been greater than 1 for three consecutive days, indicating that overall market sentiment is leaning towards bearishness or hedging; on the other hand, its implied volatility percentile remains at a relatively high level of 65%. Technical analysis also indicates 'warning signals', with multiple indicators showing 'severely overbought' conditions.

Review of yesterday's options market

Index Options

On May 6 Eastern Time, trading volume in the US stock index options market increased, with a total of 8.02 million contracts traded. The put-to-call volume ratio reached 0.72.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$ The distribution of options trading volume showed the following characteristics: peak put option volume occurred at 7,300 points, while peak call option volume occurred at 7,450 points.

Single Stock Options

$Super Micro Computer (SMCI.US)$Super Micro Computer rose 24.54%, with 737,000 options contracts traded, and the put-to-call volume ratio dropped to 0.32. Super Micro Computer reported better-than-expected Q3 earnings results, with its share price surging 16%. Citi and JPMorgan raised their target prices.

$Palantir (PLTR.US)$Palantir fell 1.56%, with 750,900 options contracts traded, and the put-to-call volume ratio dropped to 0.42. Palantir's Q1 performance exceeded expectations, but US commercial revenue was slightly below forecasts. Citi raised its target price to $225.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Intel (INTC.US)$Intel had the highest put-to-call volume ratio, reaching 1.15. Intel rose 4% due to AMD's strong earnings, with analysts expecting significant growth in the CPU market.

The highest put/call open interest ratio is$Micron Technology (MU.US)$Micron Technology reached a ratio of 1.17. Micron Technology hit an all-time high driven by demand for AI infrastructure, with analysts raising their target price to $740.

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

$POET Technologies (POET.US)$Implied volatilityPOET Technologies had the highest ratio, reaching 142.47%, down 2.09% from the previous trading day. POET Technologies rebounded 31% after Marvell canceled orders, benefiting from easing geopolitical tensions and gains in the semiconductor sector.

$Applied Digital (APLD.US)$Applied Digital saw the largest increase in implied volatility, reaching 106.68%, up 8.14% from the previous trading day. Applied Digital completed the spin-off of its cloud business, forming ChronoScale and securing $300 million in financing.

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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