Daily Options Opportunities Preview | U.S.-Iran tensions escalate; semiconductor stocks de-risk from elevated levels; energy shares rally against the broader downtrend
Today's Options Opportunity Preview
U.S. equity futures weakened after U.S.-Iran tensions escalated, oil prices surged sharply, and tech stocks continued to face pressure;
$Micron Technology (MU.US)$ down about 6.5% in pre-market trading, $SanDisk (SNDK.US)$ down 6.7% in pre-market trading. The immediate catalyst was Samsung’s earnings failing to ease market concerns over crowded positioning in AI chips, leading to further unwinding of positions across the memory supply chain. What the market is really pricing in isn’t a sudden deterioration in Micron Technology’s fundamentals, but rather a reassessment of whether the 'AI-driven memory price rally' can continue to exceed expectations after its substantial prior gains.
In options, Micron’s open interest (OI) put/call ratio stands at 1.00. Watch for potential volume-supported stabilization after the open; if the stock breaks below its pre-market low without finding support, short-term put-side volatility could widen further. Conversely, a swift recovery erasing pre-market losses could easily trigger short-covering in bearish positions.
$Intel (INTC.US)$ down about 5% in pre-market trading. Intel itself faces no single-company negative catalyst; the move reflects more of a high-beta reaction to declining risk appetite across the semiconductor sector.
From a trading perspective, Intel today acts more like a 'semiconductor sentiment thermometer.' Intel is often used as an inexpensive, high-beta shorting vehicle for the sector; if the Philadelphia Semiconductor Index rebounds after the open, Intel could also see a faster bounce.
$Occidental Petroleum (OXY.US)$ up about 3.64% in pre-market trading, $Exxon Mobil (XOM.US)$ up about 3.12% in pre-market trading. Energy stocks are among the few sectors with clear positive catalysts today. Escalating Middle East conflict has pushed oil prices higher, with both Brent and WTI crude rising sharply, prompting markets to reprice supply disruption risks and inflation concerns.
From an options perspective, Occidental Petroleum’s (OXY) open interest put/call ratio is 0.17, with positioning skewed toward calls—indicating some existing bullish sentiment in the energy sector. Chasing call options here carries the risk of implied volatility (IV) contraction if oil prices retreat. Today’s focus should instead be on whether oil sustains its elevated levels and whether energy stocks can decouple from the broader market to show independent strength intraday.
Review of yesterday's options market
Index Options
On July 7 Eastern Time, trading volume in U.S. equity index options rose, with a total of 5.87 million contracts traded. The put/call volume ratio remained flat at 1.02.
As the upcoming expiration date approaches, $S&P 500 Index (.SPX.US)$ The options volume distribution exhibits the following characteristics: put option volume peaks at the 7,400 strike, while call option volume peaks at the 7,520 strike.
Single Stock Options
$Meta Platforms (META.US)$ Up 2.55%, with 587,900 options contracts traded, and the put/call volume ratio fell to 0.33. Meta launched its first AI image generation model, Muse Image, integrated into applications including Instagram and WhatsApp.
$Intel (INTC.US)$Down 9.66%, with 675,900 options contracts traded, and the put/call volume ratio rose to 0.56. Intel shares plunged 9.7% on Tuesday, dragged down by broad semiconductor sector selling triggered by Samsung's weaker-than-expected earnings.
Top list of options trading volume
Among the top 10 stocks by options trading volume, $Tesla (TSLA.US)$ has the highest put/call volume ratio, reaching 1.00. RBC raised Tesla’s price target from $435 to $500, citing potential valuation upside from a possible merger with SpaceX.
The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.34. Micron Technology signed a long-term supply agreement with Ford Motor to provide memory solutions for next-generation vehicles.
Implied volatility rankings (underlying market cap > $10 billion and options trading volume > 100,000)
$SanDisk (SNDK.US)$Implied volatilityhighest, reaching 136.58%, down 1.27% from the previous trading day. SanDisk shares fell 10%, impacted by a broad semiconductor sector pullback following Samsung Electronics' earnings announcement in South Korea.
$Intel (INTC.US)$Implied volatility increased the most, reaching 102.00%, up 1.12% 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。
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。
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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