Daily Options Outlook | Most semiconductor stocks rebound; Micron Technology up over 3% in pre-market—signs of market stabilization emerging?

Preview of Today's Options Opportunities

On the macro level,$Invesco QQQ Trust (QQQ.US)$up 0.43% in pre-market trading,$SPDR S&P 500 ETF (SPY.US)$up 0.24% in pre-market trading. Nasdaq 100 futures declined Sunday evening, pressured by escalating U.S.-Iran military tensions and Brent crude oil prices rising above $90. Meanwhile, markets are focused on earnings reports this week from tech giants like Google and Tesla to validate the return on AI infrastructure investments. Options market data shows the QQQ's put/call volume ratio rose to 1.25 on the previous trading day, with implied volatility (IV) reaching 29.25%.

On the individual stock level,$Micron Technology (MU.US)$up 3.7% in pre-market trading, with options market data showing the stock’s put/call volume ratio declining to 0.91 and implied volatility reaching 110.66%. $Advanced Micro Devices (AMD.US)$ up 1.40% in pre-market trading, $Intel (INTC.US)$ up 1.32%, $NVIDIA (NVDA.US)$ up 0.49%, indicating investors are attempting to absorb the AI and memory sectors heavily sold off last week.

The Philadelphia Semiconductor Index fell about 10% last week, down roughly 20% from its June high; South Korea's stock market dropped another 4.1% today, and the deleveraging process has not yet fully concluded, implying that U.S. semiconductor stocks may still experience significant volatility after the market opens. Micron Technology is most sensitive to memory pricing and sector sentiment, making it a key barometer for whether the pre-market gains can hold after the open. If the stock finds support following a pullback and moves higher again, a bull call spread could be used to participate in the rebound; if it quickly breaks below the pre-market low, the pre-market rally is more likely just short-covering.

Yesterday’s Options Market Recap

Index Options

On July 17 (ET), trading volume in the U.S. equity index options market rose, with a total of 7.06 million contracts traded. The put/call volume ratio remained flat at 0.98.

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

Single-Stock Options

$Apple (AAPL.US)$rose 0.14%, with 2.192 million options contracts traded, and the put/call volume ratio increased to 0.79. Apple received approval from Chinese regulators to launch its Apple Intelligence AI platform in China.

$Netflix (NFLX.US)$fell 7.26%, with 1.4412 million options contracts traded, and the put/call volume ratio rose to 0.65. Netflix's Q2 revenue missed expectations, and its Q3 guidance indicated the weakest growth in years, prompting multiple investment banks to lower their price targets.

Options Volume Rankings

Among the top 10 stocks by options volume,$Tesla (TSLA.US)$ had the highest put/call volume ratio, reaching 0.97. Tesla will release its Q2 earnings report after market close on Wednesday, with analysts expecting revenue of $27.6 billion.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.25. Micron Technology's stock rose nearly 3% amid a broad rebound in the memory chip sector.

Implied Volatility Leaderboard (underlying market cap > $1 billion and options volume > 100,000)

$Bloom Energy (BE.US)$has the highest implied volatility, at 174.03%, up 23.97% from the previous trading day. Bloom Energy secured $1.7 billion in fuel cell investments for AI data centers, yet its stock fell by 13%.

$SK hynix (SKHY.US)$experienced the largest increase in implied volatility, reaching 146.15%, up 64.50% from the previous trading day. SK Hynix’s US-listed ADR rose 4.8%, while its home market in Korea was closed for a holiday, avoiding additional downward pressure.

Risk Warning

An option is a contract that grants the holder the right—but not the obligation—to buy or sell an underlying asset at a predetermined price on or before a specified date. Option prices are influenced by multiple factors, including the current price of the underlying asset, strike price, time to expiration, and implied volatility.

Implied volatility reflects the market’s expectation of future price fluctuations over a given period. It is derived by reverse-engineering the Black-Scholes option pricing model and is generally viewed as an indicator of market sentiment. When investors anticipate greater volatility, they may be willing to pay higher premiums for options to hedge risk, resulting in higher implied volatility.

Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer
This content does not constitute an offer, solicitation, recommendation, advice, opinion, or any guarantee regarding any securities, financial products, or instruments. The risk of loss in trading options can be substantial. In certain circumstances, your losses may exceed the initial margin deposit. Even if you place contingent orders such as 'stop-loss' or 'limit' orders, you may not be able to avoid losses. Market conditions may prevent the execution of such orders. You may be required to deposit additional margin on short notice. If you fail to meet such margin requirements within the stipulated time, your open positions may be liquidated. You remain fully liable for any resulting deficit in your account. Therefore, you should thoroughly research 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 handling expiration, as well as your rights and obligations upon exercise or expiration. Options trading involves substantial risk and is not suitable for all investors. Investors should carefully read"Characteristics and Risks of Standardized Options"。

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