Daily Options Outlook | Corning will release earnings before market open, with options markets pricing in a ±10% move; SK Hynix down another 4% in pre-market trading and set to report earnings after the close

Today's Options Opportunity Outlook

On the macro front,$Invesco QQQ Trust (QQQ.US)$Down 0.69% in pre-market,$SPDR S&P 500 ETF (SPY.US)$Down 0.08% in pre-market. Fed Chair Waller is expected to adopt a more hawkish stance, and concerns over semiconductor oversupply triggered by Chinese chipmaker CXMT’s successful IPO have led to significant declines in QQQ mega-cap tech stocks like NVIDIA and AMD. The market is focused on this week’s Fed meeting and big tech earnings. Options data shows QQQ’s put/call volume ratio dropped to 0.96 on the previous trading day, with implied volatility (IV) at 28.56%.

At the individual stock level, Korean tech names are seeing heavy selling, $SK hynix (SKHY.US)$ Korean shares一度 plunged over 13%, with their US-listed ADRs down about 4% in pre-market trading ahead of earnings release after the close tonight. Market concerns center on AI capex returns, excessive prior gains in memory stocks, and accelerating expansion by Chinese firms in memory and AI hardware. Meanwhile, US-listed semiconductor stocks such as Micron Technology, Taiwan Semiconductor, and NVIDIA also weakened, indicating this correction remains a sector-wide risk-off move.

If it continues falling below the pre-market low after the open, and $Micron Technology (MU.US)$ 、 $Western Digital (WDC.US)$ moves lower in sync, a bearish spread strategy would be more suitable to manage premium risk. If the ADR quickly recovers its pre-market losses, a post-Korean-market price rebound could occur—but sustained volume and buying interest would be needed before considering a bullish spread. SK Hynix options typically have less market depth than Micron’s; bid-ask spreads and actual execution capability should be prioritized over directional views.

$Corning (GLW.US)$ Down approximately 3.2% in pre-market trading, the company released its earnings before today’s market open. The market had previously expected core growth to remain driven by its AI data center optical communications business, though consumer electronics, display glass, and certain non-optical communications segments may still weigh on overall performance. Options markets had priced in roughly 10% earnings-related volatility ahead of the report, reflecting significant divergence in expectations around results and forward guidance.

For Corning (GLW), today’s focus should be on the gap between actual stock price movement and pre-earnings implied volatility. Even with a correct directional call, buying naked puts could suffer from IV crush if the final drop is significantly smaller than the previously implied ~10% move. A more prudent approach would be to wait for the earnings call to confirm optical communications orders, margins, and full-year guidance before deploying a spread strategy to trade the secondary directional move.

Yesterday’s Options Market Recap

Index Options

On July 27 Eastern Time, U.S. equity index options market volume declined, with a total of 5.64 million contracts traded. The put/call volume ratio fell to 1.02.

For the upcoming expiration date,$S&P 500 Index (.SPX.US)$ Options volume distribution showed the following characteristics: peak put volume at the 7,300 strike, and peak call volume at the 7,415 strike.

Single-Stock Options

$Alphabet-A (GOOGL.US)$Closed up 2.13%, with 552,200 option contracts traded; the put/call volume ratio rose to 0.45. Google Cloud revenue surged 82% year-over-year to $25 billion, but the company reported negative free cash flow due to a sharp increase in AI-related capital expenditures and faces a $10 billion lawsuit risk from the EU.

$Advanced Micro Devices (AMD.US)$Closed down 5.17%, with 654,700 option contracts traded; the put/call volume ratio declined to 0.79. AMD shares fell 5.17%, pressured by news of Chinese chipmaker ChangXin Technology's IPO surge and mass production of Chinese DUV lithography equipment.

Options Volume Rankings

Among the top 10 stocks by options volume,$Tesla (TSLA.US)$Tesla had the highest put/call volume ratio at 1.06. Tesla’s stock price hit a one-year low, and RBC lowered its price target from $500 to $480.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.38. Micron Technology’s share price plummeted amid concerns over supply glut triggered by China’s ChangXin Memory Technologies’ listing.

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

$Bloom Energy (BE.US)$Implied volatility was the highest at 165.50%, down 1.32% from the previous trading day. Bloom Energy will report Q2 earnings on July 28, with analysts expecting revenue to surge 105% year-over-year to $826 million.

$AMC Entertainment (AMC.US)$Implied volatility increased the most, reaching 126.13%, up 17.04% from the previous trading day. AMC Theatres reported strong second-weekend box office performance for Christopher Nolan’s 'Odyssey,' with domestic ticket sales hitting $87 million.

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"。

423K Views