Daily Options Outlook | RKLB rose 2.79% after announcing the acquisition of satellite communications provider IRDM; NOK up 2.3% in pre-market; Strategy surged 12.60% yesterday, unveiling a $1 billion share buyback and a $1.25 billion Bitcoin monetization plan

Today's Options Market Outlook

On the individual stock level, $Rocket Lab (RKLB.US)$ Up 2.56% in pre-market following a 15.93% gain yesterday. Rocket Lab announced on Monday it will acquire satellite communications provider $Iridium Communications (IRDM.US)$ in an all-cash and stock deal valued at approximately $8 billion. Options data shows Rocket Lab’s put/call volume ratio stands at 0.36, with implied volatility (IV) at 96.41% and IV percentile at 71%, indicating market bets on a short-term upside.

$Nokia Oyj (NOK.US)$ Up 2.3% in pre-market as Amazon partners with Nokia to upgrade cloud-network infrastructure, leveraging AI to drive automation in telecom networks. Options data shows Nokia’s put/call volume ratio at 0.22 and open interest ratio at 0.33, reflecting bullish sentiment on long-term share price appreciation.

$Applied Materials (AMAT.US)$ Up 3.48% in pre-market after closing 10.82% higher yesterday. Applied Materials unveiled a new line of three-dimensional (3D) chip manufacturing equipment tailored for AI semiconductors, focusing on advanced packaging processes such as high-bandwidth memory (HBM), chiplets, and hybrid bonding, including required planarization, deposition, and metrology inspection capabilities. Options data shows Nokia’s put/call volume ratio at 0.22 and open interest ratio at 0.33, reflecting bullish sentiment on long-term share price appreciation. Meanwhile, Applied Materials’ put/call volume ratio stands at 0.71, open interest ratio at 1.03, implied volatility at 93.03%, and IV percentile at 100%, suggesting the market anticipates significant near-term price movement.

Review of yesterday's options market

Index Options

On June 29, Eastern Time, trading volume in the U.S. equity index options market declined, with a total of 5.77 million contracts traded. The put/call volume ratio fell to 1.19.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$ The distribution of options volume showed the following characteristics: put option volume peaked at the 7,400 strike, while call option volume peaked at the 7,450 strike.

Single Stock Options

$Strategy (MSTR.US)$It rose 12.60%, with 533,100 options contracts traded, and the put/call volume ratio increased to 1.25. Strategy announced a $1 billion stock buyback program and authorized a Bitcoin monetization plan of up to $1.25 billion.

$Microsoft (MSFT.US)$It declined 1.18%, with 930,800 options contracts traded, and the put/call volume ratio dropped to 0.39. Renowned investor Michael Burry purchased long-dated Microsoft call options with a $700 strike price expiring in December 2028.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Strategy (MSTR.US)$It recorded the highest put-to-call volume ratio, reaching 1.25.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.47. Micron Technology’s third-quarter earnings beat expectations, prompting analysts to significantly raise their price target to $1,410.

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

$Sellas Life Sciences (SLS.US)$Implied volatilityIt posted the highest and fastest growth, surging 244.61%, an increase of 14.31% from the previous trading day. Sellas Life Sciences’ stock hit a 52-week high, as management changes to control provisions sparked acquisition speculation, with its Phase 3 trial nearing completion.

$Bloom Energy (BE.US)$It saw the second-largest increase in implied volatility, rising to 134.05%, up 11.36% from the previous trading day. Bloom Energy’s stock rose 5.94% in pre-market trading on Monday, rebounding after plunging 18% on Friday amid investor rotation into rival FuelCell Energy.

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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