Market Overview

As of the market close, the Dow Jones Industrial Average(DJI.US) rose by 0.51%, ending at 42,519.64 points. The NASDAQ(IXIC.US) increased by 0.81%, closing at 19,398.96 points. The S&P 500 index(SPX.US) gained 0.58%, finishing at 5,970.37 points.

Notably, the trading volume for S&P 500 (SPX) put options reached 1.8556 million contracts, while call options saw a volume of 1.5589 million contracts. The put/call ratio was approximately 1.19, indicating a stronger bearish sentiment among investors for the index. Among these, a specific put option, SPXW 180725 P 4800, recorded a trading volume of 63,700 contracts, with a VOL/OI ratio of 131.62. This contract has a strike price of 4,800.00 and experienced a decline of 15.79%.

Top 10 Options Trading Volume:

NVIDIA Corporation(NVDA.US): Overnight, shares rose by 2.8%, with total options volume reaching 2.93 million contracts, an increase of 816,400 from the previous day, representing a 0.39-fold increase. Open interest stands at 22.18 million contracts. 

By Tuesday's close, NVIDIA's market capitalization reached $3.4457 trillion, surpassing Microsoft and Apple to become the largest publicly traded company in the U.S. Jefferies analysts noted that NVIDIA has transitioned beyond mere chip sales to become a comprehensive AI infrastructure provider.

Tesla Motors, Inc.(TSLA.US): Overnight, shares increased by 0.46%, with total options volume hitting 1.84 million contracts, up by 223,700 from the previous day, a 0.14-fold increase. Open interest is at 8.58 million contracts. 

Elon Musk commented on social media that the large-scale tax and spending bill is "ridiculous and full of political manipulation," predicting it will significantly raise the budget deficit to $2.5 trillion, imposing an unsustainable debt burden on U.S. citizens.

Palantir(PLTR.US): Overnight, shares rose by 0.86%, with total options volume at 670,000 contracts, a decrease of 171,300 from the previous day, representing a 0.2-fold reduction. Open interest is at 3.47 million contracts. 

Recent reports indicate that the Trump administration is relying on Palantir to build the technological foundation needed for its executive order requiring data sharing among federal agencies.

CoreWeave(CRWV.US): Overnight, shares surged by 25.19%, with options volume reaching 660,000 contracts, an increase of 419,100 from the previous day, representing a 1.77-fold increase. Open interest stands at 490,000 contracts. 

The NVIDIA-backed cloud computing software provider signed a long-term data center lease agreement with Applied Digital on Monday.

Apple Inc.(AAPL.US): Overnight, shares rose by 0.78%, with total options volume at 590,000 contracts, an increase of 20,800 from the previous day, representing a 0.04-fold increase. Open interest is at 5.26 million contracts.

PUT/CALL: Counts the percentage of open put and call option holdings for the listed stocks during the trading day.

Options Activity Tracking:

Advance Auto Parts, Inc.(AAP.US): Overnight, shares rose by 4.5%. The call option AAP 060625 C 54, with a strike price of $54.00 and expiring on June 6, 2025, saw a volume of 19,900 contracts, increasing by 126.67%. Investors are betting on a long-term bullish trend for the stock.

CoreWeave(CRWV.US): Overnight, shares surged by 25.19%. The company signed a 15-year, $7 billion lease agreement with data center operator Applied Digital. Total options volume reached 660,000 contracts, including:

• The put option CRWV 060625 P 140, with a strike price of $140.00 and expiring on June 6, 2025, had a volume of 15,900 contracts, decreasing by 76.96%.
• The call option CRWV 130625 C 150, with a strike price of $150.00 and expiring on June 13, 2025, saw a volume of 8,400 contracts, increasing by 609.68%.

vol/oi: The ratio of options volume to the number of open positions in the contract, with higher vol/oi indicating that the market is creating an abnormal number of new positions.

Option IV Unusual Movements:

Wolfspeed(WOLF.US), a U.S. Silicon Carbide (SiC) chip manufacturer, saw its stock surge 15.7% overnight. The total options volume reached 56,000 contracts, with an implied volatility of 305.21%.

On the news front, Wolfspeed announced last week that it is preparing to file for bankruptcy in the coming weeks, with its market capitalization shrinking from billions to single digits.

High IV stocks:

Source: Barchart, data as of Eastern Time, June 3, 2025.

Read More: A quick look at the pros and cons of index options!

Note: Implied volatility estimates the expected fluctuation of a stock's price and is derived from the price of its options. High and low levels of implied volatility signify market sentiment and option supply and demand dynamics. Feeding into an option's premium, implied volatility, time value, and directional movement embody the core aspects influencing option pricing. Traders navigate their strategies within this three-dimensional framework.

Volume reflects the aggregate volume of options contracts executed in a single day.

IV Rank gauges the standing of the current implied volatility within the highest and lowest values observed over the past year, serving as a relative measure.

IV Percentile denotes the proportion of days during the past year when the implied volatility was lower than the present rate, providing a statistical norm.

IV Yearly High marks the apex of an option's implied volatility recorded within the preceding year, signaling its peak uncertainty or risk