Daily Options Opportunities Preview | Marvell rebounds 7.22% in pre-market; storage sector sees pre-market recovery; Nokia drops 13.48% after issuing €500 million bonds due in 2032

Today's Options Opportunity Preview

At the macro level, the three major indices diverged following 'Black Friday.' Nasdaq futures rose 0.56%, S&P 500 futures gained 0.24%, while Dow Jones futures declined 0.21% in pre-market trading. The options market indicates $Invesco QQQ Trust (QQQ.US)$ a put/call volume ratio of 1, an open interest ratio of 1.65, an implied volatility (IV) of 30.12%, and an IV percentile of 98%. Despite the post-NFP sell-off, the market continues to trade large volumes of put options to hedge against further downside in the broader indices.

On the individual stock level, $Marvell Technology (MRVL.US)$ surged 7.22% in pre-market trading. The S&P 500 announced it will add Marvell and $Flex Ltd (FLEX.US)$ . The options market shows Marvell’s put/call volume ratio at 0.66, open interest ratio at 1.16, implied volatility (IV) at 114.20%, and IV percentile at 100%. The market expects the stock price to remain highly volatile.

The storage sector rebounded in pre-market trading today, $Micron Technology (MU.US)$ up 3.93% in pre-market, $SanDisk (SNDK.US)$ up 1.76%, $Western Digital (WDC.US)$ up 2.88%. The options market shows SanDisk’s put/call volume ratio at 1.34, open interest ratio at 1.51, implied volatility (IV) at 110.98%, and IV percentile at 82%. The market anticipates significant price swings and has deployed substantial put option positions to hedge against potential downside risk.

Review of yesterday's options market

Index Options

On June 5 (Eastern Time), U.S. equity index options saw increased volume, with a total of 9.79 million contracts traded. The put/call volume ratio rose to 1.14.

Single Stock Options

$Apple (AAPL.US)$ closed down 1.25%, with 1.8723 million options contracts traded, and the put/call volume ratio rising to 0.66. Apple will unveil a revamped Siri and AI features at its WWDC conference, with its stock price near all-time highs.

$Nokia Oyj (NOK.US)$Closed down 13.48%, with 866,300 options contracts traded, and the put/call volume ratio rose to 0.32. Nokia issued EUR 500 million senior unsecured bonds with a coupon rate of 3.625%, maturing in 2032.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Strategy (MSTR.US)$recorded the highest put/call volume ratio at 1.60. Strategy’s stock plunged 24% as Bitcoin fell below USD 60,000 and the company’s first-ever Bitcoin sale triggered market panic.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.34. Micron Technology’s stock plummeted 13%, impacted by Broadcom’s disappointing earnings guidance and strong employment data fueling expectations of higher interest rates.

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

$Applied Optoelectronics (AAOI.US)$Implied volatilitywas the highest, reaching 144.37%, an increase of 12.97% from the previous trading day. Applied Optoelectronics director Chen Minzhu sold 8.247 million shares worth USD 1.658 million.

$Applied Optoelectronics (AAOI.US)$saw the largest increase in implied volatility, reaching 144.37%, up 12.97% from the previous trading day.

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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