Daily Options Outlook | Storage sector rebounds in pre-market trading; Western Digital up 4.64% pre-market with active options volume

Today's Options Opportunity Outlook

On a macro level,$Invesco QQQ Trust (QQQ.US)$Up 1.57% in pre-market trading,$SPDR S&P 500 ETF (SPY.US)$Up 0.93% in pre-market trading, the Federal Reserve’s July meeting is set for this week, with market expectations of a rate hike rising to nearly 40%, primarily driven by falling crude oil prices following easing tensions in the Middle East and sustained AI investment pushing up inflation expectations. Meanwhile, tech giants including Microsoft and Meta will release earnings this week, with AI spending levels under close scrutiny. Options market data shows the QQQ put/call volume ratio rose to 1.18 on the previous trading day,Implied volatility(IV) reached 28.63%.

At the individual stock level, the memory/storage sector rebounded in pre-market trading,$SanDisk (SNDK.US)$Up 4.53% in pre-market trading, $SK hynix (SKHY.US)$ Up 5.78%, $Micron Technology (MU.US)$ Up 3.15%. Options market data shows SanDisk’s put/call volume ratio rose to 1.37, with implied volatility reaching 140.01%.

Looking at options expiring on July 31, 2026, the highest volume was in the $1,100 strike put option, which rose by 6.04%.

$NVIDIA (NVDA.US)$Up 1.26% in pre-market trading, NVIDIA has signed an AI infrastructure cooperation agreement with SK Group worth over $500 billion. Options market data shows the stock’s put/call volume ratio rose to 0.57, with implied volatility reaching 45.61%.

Review of yesterday's options market

Index Options

On July 24 in U.S. Eastern Time, trading volume in the U.S. equity index options market declined, with a total of 6.29 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 showed the following characteristics: peak put option volume occurred at the 7,400 strike, while peak call option volume was at the 7,500 strike.

Individual stock options

$Apple (AAPL.US)$Apple closed up 3.53%, with 2.3741 million options contracts traded, and the put/call volume ratio dropped to 0.62. Jefferies raised Apple's price target from $299.88 to $308.92.

$Intel (INTC.US)$Intel closed down 7.89%, with 1.6298 million options contracts traded, and the put/call volume ratio fell to 0.61. Intel's stock declined despite strong earnings, and JPMorgan raised its price target to $85 while maintaining an underweight rating.

Top Option Volume Rankings

Among the top 10 stocks by option volume,$Micron Technology (MU.US)$Micron Technology had the highest put/call volume ratio at 1.23. Micron Technology's stock experienced high volatility, with 'Big Short' investor Michael Burry increasing his short position, even as pre-market trading showed a 3.3% gain.

The highest put/call open interest ratio belongs to$Micron Technology (MU.US)$, reaching 1.31.

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

$Bloom Energy (BE.US)$Bloom Energy had the highest implied volatility at 167.72%, down 6.68% from the previous trading day. Bloom Energy is set to release its Q2 earnings on July 28, and options traders are pricing in a potential 27% stock price swing.

$Fermi (FRMI.US)$Fermi Energy saw the largest increase in implied volatility, reaching 158.39%, up 12.99% from the previous trading day. Fermi announced a milestone for Project Matador, with three Siemens gas turbines arriving at the Port of Houston en route to the Texas site.

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 assess attractiveness, identify potential mispricings, 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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