Daily Options Outlook | AMAT will release earnings after the bell, with the options market pricing in a move of approximately ±10%; Dell Technologies is up over 4% in pre-market trading, continuing the strength in the AI server sector.

Today's Options Opportunity Outlook

On the macro front, US stock index futures are slightly higher in pre-market trading.$Invesco QQQ Trust (QQQ.US)$Up 0.10% in pre-market trading,$SPDR S&P 500 ETF (SPY.US)$Up 0.19% in pre-market trading.The US July PPI and initial jobless claims will be released at 8:30 PM tonight. The market expects headline PPI to rise 0.2% month-over-month, and core PPI to rise 0.3% month-over-month.If price pressures exceed expectations, US Treasury yields may rebound, with AI hardware stocks that have seen significant recent gains being the first to feel the impact. Yesterday's US July CPI data met expectations, with core inflation dropping to 2.5%, the lowest level since March 2021. Market expectations for a Fed rate hike in September fell from 50% to 40%. The S&P 500 approached record highs driven by strong performance in AI-related stocks. Options market data shows the SPY put/call volume ratio rose to 1.17 on the previous trading day, with implied volatility (IV) reaching 14.47%.

At the individual stock level, $Applied Materials (AMAT.US)$ The stock price is up approximately 1% in pre-market trading; the company will report earnings after the close.The market expects quarterly revenue of approximately $9 billion, a year-over-year increase of about 23%, with EPS around $3.39. Trading focus is centered on DRAM equipment, demand for advanced packaging, and guidance for the next quarter. The results will also impact the pricing of MU, WDC, and other semiconductor equipment stocks. The options market implies a volatility range of ±9.98%.

The options volume ratio is 1.26, with put volume slightly exceeding call volume, reflecting some capital increasing downside protection ahead of earnings, though overall sentiment has not turned significantly bearish. Since implied volatility is typically high before earnings reports, post-market stock prices need to exhibit sufficient movement for long option strategies to offset losses from volatility crush. Today, key observations include whether options volume continues to skew towards puts and whether the company can deliver both better-than-expected results and strong guidance.

$Dell Technologies (DELL.US)$The stock price is up approximately 4.1% in pre-market trading, continuing the strength in the AI server sector.。 $Cisco (CSCO.US)$ Disclosed AI infrastructure orders and better-than-expected networking equipment revenue once again prove that enterprises and cloud service providers are still expanding their computing power investments. Consequently, capital is shifting towards Dell Technologies and HPE, which have higher server exposure. Dell Technologies previously reported significant growth in AI server revenue and orders, and the market continues to view it as a primary beneficiary of this round of capex expansion.

Options implied volatility is at the 92nd historical percentile, indicating highly tense market sentiment and significant divergence in views on future trends. Large purchases of deep out-of-the-money put options with longer maturities reflect concerns among some investors regarding long-term tail risks.

$SpaceX (SPCX.US)$Pre-market gains of 1.45% as SpaceX releases the Grok 4.6 AI model; Musk states AI revenue will surpass other business segments in September. Options market data shows the stock's Put/Call volume ratio dropping to 0.71, with implied volatility reaching 74.65%.

Recap of yesterday's options activity

Index Options

On August 12 (ET), trading volume in the US index options market declined, with a total of 5.1 million contracts traded. The Put/Call ratio rose to 1.04.

For the upcoming expiration date,$S&P 500 Index (.SPX.US)$ The distribution of options trading volume exhibited the following characteristics: peak put option volume at the 7,745 strike, and peak call option volume at the 7,760 strike.

Single-Stock Options

$Super Micro Computer (SMCI.US)$Closed up 19.02%, with 720,300 options contracts traded; the Put/Call volume ratio fell to 0.31. Super Micro Computer reported Q4 earnings that exceeded expectations, provided FY2027 revenue guidance of $65-72 billion, and secured over $60 billion in new orders.

$Meta Platforms (META.US)$Closed down 3.38%, with 796,300 options contracts traded; the Put/Call volume ratio rose to 0.59. Meta and NVIDIA released open-source AI models this week and jointly urged policymakers not to impose premature restrictions on open-weight AI models.

Options Volume Rankings

Among the top 10 stocks by options volume,$Tesla (TSLA.US)$Recorded the highest Put/Call volume ratio at 0.76. Tesla is considering building a $10.1 billion solar cell factory in Texas, expected to begin production in 2029.

The highest put/call open interest ratio is$Blue Owl Capital (OWL.US)$Reached 1.38. Blue Owl Capital issued $750 million in senior notes through its subsidiary, with a coupon rate of 6.75% and a 10-year maturity.

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

$Sellas Life Sciences (SLS.US)$Implied volatility peaked at 115.14%, a decrease of 38.15% from the previous trading session. Sellas Life Sciences reported a Q2 EPS loss of $0.05; the Phase 3 REGAL trial is approaching its 80th event milestone, and the SLS009 Phase 2 trial has enrolled 28 patients.

$Dell Technologies (DELL.US)$Saw the largest increase in implied volatility, reaching 84.22%. Goldman Sachs raised the price target for Dell Technologies to $510 and maintained a Buy rating, citing strong AI server demand driving performance growth.

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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