Daily Options Outlook | Semiconductor stocks rebound; Corning up 5.42% in pre-market trading; Broadcom rises 1.47% pre-market after signing a $30 billion multi-year chip supply agreement with Apple

Today's Options Market Outlook

At the individual stock level, memory stocks are rebounding in pre-market trading, $Micron Technology (MU.US)$ Up 3.66% in pre-market trading, $SanDisk (SNDK.US)$ up 2.88%, $Western Digital (WDC.US)$ up 3.94%. Options market signals show Micron Technology's put/call volume ratio at 0.91, with an implied volatility (IV) of 105.02% and an IV percentile of 91%, indicating the market expects significant stock price volatility.

$Corning (GLW.US)$ Leading the optical communications sector, up 5.42% in pre-market trading; $Coherent (COHR.US)$ up 3.27%, $Lumentum (LITE.US)$ Up 2.59%, $Marvell Technology (MRVL.US)$ up 3.19%. Options market signals show Corning's put/call volume ratio at 0.92, with an implied volatility (IV) of 96.68% and an IV percentile of 98%, suggesting the market anticipates substantial stock price swings and is using put options to hedge against potential downside risk.

$Applied Materials (AMAT.US)$ Up 3.91% in pre-market trading. Applied Materials’ CEO stated that chipmakers are sharing equipment demand forecasts with the company for the next two years or longer to ensure smooth capacity expansion. This suggests the current AI-driven investment boom could last longer than expected. Options market signals show Applied Materials' put/call volume ratio at 1.51, with an implied volatility (IV) of 92.54% and an IV percentile of 99%, indicating investors are using put options to hedge against potential downside risk.

Review of yesterday's options market

Index Options

On July 8 Eastern Time, U.S. equity index options market volume rose, with a total of 6.02 million contracts traded. The put/call volume ratio declined to 1.01.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$ Options volume distribution showed the following characteristics: peak put option volume at the 7,415 strike, and peak call option volume at the 7,500 strike.

Single Stock Options

$Broadcom (AVGO.US)$ Closed up 4.83%, with 624,500 options contracts traded, and the put/call volume ratio dropped to 0.38. Apple signed a multi-year custom chip supply agreement with Broadcom worth over $30 billion, driving Broadcom’s shares up 4.8%.

$Tesla (TSLA.US)$ Closed down 2.19%, with 2.826 million options contracts traded, and the put/call volume ratio rose to 1.01. Tesla launched the Model Y long-wheelbase version, but its share price fell as investors focused more on its AI business.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Tesla (TSLA.US)$The put/call volume ratio was the highest, reaching 1.01.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.33. Micron Technology's stock has declined approximately 23% from its June peak, as investors reassess the sustainability of AI memory demand, though institutions remain optimistic about its long-term outlook.

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

$Bloom Energy (BE.US)$Implied volatilitypeaked at 153.74%, down 1.09% from the previous trading day. Hunterbrook Media released a short-seller report questioning Bloom Energy's claim of independence in its China supply chain; the firm holds a short position.

$AMC Entertainment (AMC.US)$implied volatility rose the most, reaching 133.31%, up 16.40% from the previous trading day. Macquarie raised AMC Entertainment's price target from $1.50 to $2.00 and maintained a neutral rating.

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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