Daily Options Outlook | NOW up 5.5%; MU down 2.95%; IREN Ltd up 13.48% after signing a $1.6 billion procurement agreement with Dell to purchase NVIDIA Blackwell

Today's Options Market Recap

$ServiceNow (NOW.US)$ Up 5.5% in pre-market trading. The market remains divided on whether AI poses a threat or creates new growth opportunities for software stocks. Options data shows NOW’s put/call volume ratio at 0.28, implied volatility (IV) at 61.46%, and IV percentile at 90%, reflecting strong market expectations for a rebound and further upside in NOW’s share price.

$Micron Technology (MU.US)$ Down 2.37% in pre-market trading. However, both Trump and UBS Group have recently expressed bullish views on Micron, and market analysts believe the stock still has significant upside potential. Micron’s implied volatility (IV) percentile currently stands at 100%, indicating that the market expects continued high volatility in its share price.

$Marvell Technology (MRVL.US)$ Down 2.7% in pre-market trading, but yesterday’s earnings report showed Marvell recorded record revenue and significantly raised its guidance. Options market data shows Marvell’s put/call volume ratio stands at 0.87, with an implied volatility of 97.88% and an IV percentile of 99%. Market participants have deployed some put options to hedge against potential downside risk.

Options Market Preview from Yesterday

Index Options

On May 27 (U.S. Eastern Time), trading volume in the U.S. equity index options market declined, with a total of 4.74 million contracts traded. The put/call volume ratio fell to 1.09.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$ Options trading volume distribution shows the following characteristics: peak put option volume occurred at the 7,500 strike, while peak call option volume was at the 7,580 strike.

Single Stock Options

$IREN Ltd (IREN.US)$Closed up 13.48%, with 718,900 options contracts traded and the put/call volume ratio rising to 0.51. IREN Ltd signed a $1.6 billion procurement agreement with Dell to purchase NVIDIA Blackwell systems.

$Nokia Oyj (NOK.US)$Closed down 4.74%, with 523,300 options contracts traded and the put/call volume ratio falling to 0.25. Nokia launched an AI Networking Innovation Lab and received FCC approval, pushing its share price to a 52-week high.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Micron Technology (MU.US)$Has the highest put/call volume ratio at 0.66. Barclays raised Micron Technology’s price target from $675 to $1,175 and maintained a Buy rating.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.29.

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

$T1 Energy (TE.US)$Implied volatilityHighest at 186.21%, up 14.09% from the previous trading day. T1 Energy’s stock surged 21.9% on Tuesday as major shareholder Trina Solar sold $190 million worth of shares amid skepticism from short-sellers.

$AST SpaceMobile (ASTS.US)$Experienced the largest increase in implied volatility, reaching 122.03%, up 25.64% from the previous trading day. AST SpaceMobile executive Scott Wisniewski plans to sell 25,900 shares valued at approximately $3.28 million.

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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