Daily Options Outlook | Memory stocks rebound in pre-market trading; SK Hynix up 7.14%, SanDisk up 8.27%, Micron Technology up 6.93% pre-market, benefiting from the semiconductor sector's recovery

Today's Options Opportunity Preview

On a macro level,$Invesco QQQ Trust (QQQ.US)$Up 1.33% in pre-market trading,$SPDR S&P 500 ETF (SPY.US)$Up 0.53% in pre-market trading, as deteriorating Middle East tensions pushed oil prices higher, with the Houthis announcing a blockade on Saudi maritime shipping and ceasefire negotiations between Iran and the U.S. still ongoing. Markets are focused on the tech earnings season, with the semiconductor sector seeking a rebound after a 20% correction, while investors express concerns over the sustainability of AI-related investments. The options market shows QQQ's put/call volume ratio dropped to 1.21 on the previous trading day,Implied volatility(IV) reached 28.89%.

At the individual stock level,$Micron Technology (MU.US)$Up 6.93% in pre-market trading; Micron Technology rose more than 5% in Monday’s pre-market session, benefiting from a rebound in the semiconductor sector. The options market showed the stock’s put/call volume ratio rose to 1.08, with implied volatility reaching 112.13%, indicating heightened market expectations for future price swings.

$NVIDIA (NVDA.US)$Up 1.24% in pre-market trading; NVIDIA disclosed a passive 9.3% equity stake in NEBIUS. The options market showed the stock’s put/call volume ratio rose to 0.58, with implied volatility at 43.06%.

Review of yesterday's options market

Index Options

On July 20 Eastern Time, U.S. equity index options market volume declined, with a total of 5.74 million contracts traded. The put/call volume ratio rose to 1.08.

In the upcoming expiration cycle,$S&P 500 Index (.SPX.US)$ Options volume distribution exhibited the following characteristics: peak put option volume occurred at the 7,410 strike, while peak call option volume was at the 7,500 strike.

Individual stock options

$Microsoft (MSFT.US)$Closed up 2.15%, with 881,200 options contracts traded and the put/call volume ratio falling to 0.37. Microsoft and AMD expanded their partnership, announcing plans to deploy AMD’s next-generation AI chip Helios system on the Azure cloud platform.

$SpaceX (SPCX.US)$Closed down 3.34%, with 606,800 options contracts traded and the put/call volume ratio falling to 0.78. SpaceX will release its first post-listing earnings report on August 4, coinciding with the unlocking of approximately $109.2 billion worth of insider restricted shares.

Top Option Volume Rankings

Among the top 10 stocks by option volume,$Micron Technology (MU.US)$Recorded the highest put/call volume ratio at 1.08. Micron Technology’s shares rose nearly 4% in Monday’s pre-market trading, as analysts expect the memory chip shortage to persist through 2028, with Morgan Stanley stating the current sell-off presents a good entry opportunity.

The highest put/call open interest ratio belongs to$Micron Technology (MU.US)$, reaching 1.30.

Implied Volatility Rankings (underlying market cap > $1 billion and option volume > 100,000 contracts)

$Bloom Energy (BE.US)$Had the highest implied volatility at 186.15%, up 6.96% from the previous trading session. Bloom Energy will release its Q2 earnings on July 28, with analysts forecasting revenue growth of 106.5% year-over-year to $828 million.

$NEBIUS (NBIS.US)$Experienced the largest increase in implied volatility, reaching 177.42%, up 10.09% from the previous trading session. NVIDIA holds a 9.3% stake in NEBIUS, which secured $775 million in debt financing and launched a new partner model.

Risk Warning

An option is a contract that gives the holder the right—but not the obligation—to buy or sell an underlying asset at a fixed price on or before a specific date. The price of an option is influenced by multiple 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 future price fluctuations over the life of an option. It is derived by back-solving from 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 prices for options to hedge risk, leading to elevated 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 an offer, solicitation, recommendation, advice, opinion, or any form of 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 you made. Even if you place contingent orders, such as 'stop-loss' or 'limit' orders, there is no assurance these will prevent losses. Market conditions may render such orders unexecutable. You may be required to deposit additional margin funds on very short notice. If you fail to meet such a margin call within the specified timeframe, your open positions may be liquidated. Nevertheless, you remain liable for any resulting deficit in your account. Therefore, you should thoroughly research and understand options before trading and carefully consider whether such transactions are suitable for you based on your financial condition and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and handling expirations, as well as your rights and obligations upon exercise or expiration. Options trading involves substantial risk and is not appropriate for all investors. Investors should carefully read"Characteristics and Risks of Standardized Options"。

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