Daily Options Outlook | Micron Technology up 1.91% in pre-market trading; rebounded after panic triggered by Samsung's shareholder return plan; NVIDIA up 1.29%, with earnings expected to be released after the market close tomorrow night

Today's Options Opportunity Outlook

On a macro level,$Invesco QQQ Trust (QQQ.US)$Up 0.71% in pre-market trading,$SPDR S&P 500 ETF (SPY.US)$Up 0.38% in pre-market trading, the Nasdaq-100 has fallen consecutively and dropped below its 20-day moving average. Market participants are concerned that NVIDIA's earnings report on August 26 and Federal Reserve Chair Powell's speech at Jackson Hole may trigger volatility. The current options marketimplied volatilityis at year-to-date lows, with thin gamma exposure. Institutions generally believe that the cost of protective put options has hit historic lows, presenting a window for hedging strategies. Options data shows the Put/Call volume ratio for QQQ rose to 1.09 in the previous trading session, with implied volatility (IV) reaching 22.55%.

At the individual stock level,$Micron Technology (MU.US)$Up 1.91% in pre-market trading, Micron Technology faces intensified competitive pressure due to Yangtze Memory Technologies' $4.9 billion IPO. Options data indicates the stock's Put/Call volume ratio has dropped to 0.76, with implied volatility reaching 68.64%.

$NVIDIA (NVDA.US)$Up 1.29% in pre-market trading, NVIDIA has fallen for seven consecutive sessions, marking its longest losing streak since September 2022. Options market data indicates the stock's put/call volume ratio rose to 0.65, with implied volatility reaching 45.05%.

Options Market Recap for Yesterday

Index Options

On August 24 (Eastern Time), trading volume in the US equity index options market declined, with a total of 4.9 million contracts traded. The put/call volume ratio increased to 1.00.

In the upcoming expiration cycle,$S&P 500 Index (.SPX.US)$ The distribution of options trading volume showed the following characteristics: peak put option volume at the 7,650 strike price, and peak call option volume at the 7,700 strike price.

Individual stock options

$Strategy (MSTR.US)$Closed up 2.83%, with 457,300 options contracts traded; the put/call volume ratio rose to 0.59. Strategy raised $2 billion through stock sales to build a cash pool, while Canaccord Genuity raised its price target from $130 to $175.

$Micron Technology (MU.US)$Closed down 5.83%, with 1.1329 million options contracts traded; the put/call volume ratio fell to 0.76. Micron Technology's stock dropped 6.6% on Monday, impacted by a broader pullback in tech stocks and the IPO application filed by Chinese memory chip maker YMTC.

Top Option Volume Rankings

Among the top 10 stocks by option volume,$Micron Technology (MU.US)$recorded the highest put/call volume ratio, reaching 0.76.

The highest put/call open interest ratio belongs to$Micron Technology (MU.US)$, reaching 1.14.

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

$IREN Ltd (IREN.US)$Implied volatility hit a high of 103.59%, up 0.47% from the previous trading session. IREN's stock fell approximately 5% on Monday as investor caution grew ahead of earnings reports and tech stocks generally weakened.

$Bloom Energy (BE.US)$Saw the largest increase in implied volatility, reaching 91.53%, up 5.29% from the previous trading session. Bloom Energy's Chief Legal Officer, Soderberg, sold 2,895 shares worth approximately $676,000.

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 pricesto 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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