Market Overview

News from March 27th, as of the closing of the market, the Dow Jones Industrial Average fell by 0.31% to 42,454.79 points; the NASDAQ Index fell by 2.04% to 17,899.01 points; the S&P 500 Index fell by 1.12% to 5,712.2 points.

It is noteworthy that the put option trading volume for S&P 500 INDEX(SPX.US) was 2.3193 million contracts, while the call option trading volume was 1.7439 million contracts. The put to call trading volume ratio was approximately 1.33, indicating that investors had a stronger intention to bet on a decline in the index. Among them, one of the S&P 500 INDEX(SPX.US) put options,SPXW 250425 P 4950, reached a trading volume of 23,800 contracts with a VOL/OI value of 100.70. The strike price of this contract was $4,950.00, and the option increased by 22.62%.

Top 10 Options Trading Volume:

NVIDIA Corporation(NVDA.US): Overnight it fell by 5.74%, with the total volume of options traded reaching 4.09 million contracts, an increase of 2.3032 million contracts from the previous day, an increase of 1.28 times compared to the previous day. The open interest stood at 20.46 million contracts, with put options accounting for 41.81% and call options accounting for 58.19% of the total volume traded. 

Tesla Motors, Inc.(TSLA.US): Overnight it fell by 5.58%, with the total volume of options traded reaching 2.91 million contracts, an increase of 154,200 contracts from the previous day, an increase of 0.06 times compared to the previous day. The open interest stood at 8.71 million contracts. 

U.S. President Trump announced the imposition of a 25% tariff on all imported cars. In addition, the Canadian government recently excluded Tesla from the list of beneficiaries of its federal electric vehicle subsidy program (iZEV) and froze subsidy funds that have been applied for but not yet disbursed. This uncommon move came just 72 hours after the Trump administration announced a 10% tariff on Canadian aluminum, and it’s seen as a targeted retaliation by Canada in the field of new energy.

GameStop Corp. Class A(GME.US): Overnight it rose by 11.65%, with the total volume of options traded reaching 820,000 contracts, an increase of 607,700 contracts from the previous day, an increase of 2.87 times compared to the previous day, with put options accounting for 29.56% and call options accounting for 70.44% of the total volume traded. The open interest stood at 900,000 contracts. 

In the news, after market close on Tuesday, the company stated in a brief announcement that the board unanimously passed the updated investment policy, which adopts Bitcoin as the company’s financial reserve asset. GameStop disclosed that it may in the future invest part of its cash, debt, or equity financing proceeds in Bitcoin. Moreover, GameStop announced its Q4 earnings up to February 1st, with net sales of $1.283 billion, below the analyst forecast of $1.48 billion; net profit of $131.3 million, above the expected $33 million.

Broadcom Limited(AVGO.US): Overnight it fell by 4.78%, with the total volume of options traded reaching 370,000 contracts, an increase of 200,400 contracts from the previous day, an increase of 1.18 times compared to the previous day. The open interest stood at 1.97 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:

GameStop Corp. Class A(GME.US): Overnight, it rose by 11.65% and saw a number of put options being bet on, including:

GME 280325 P 29 - A put option with a strike price of $29.0, expiring on March 28, 2025, traded 16,100 contracts and the option fell by 71.71%.

GME 280325 P 27.5 - A put option with a strike price of $27.5, expiring on March 28, 2025, traded 13,500 contracts and the option fell by 87.87%.

T-Mobile US, Inc.(TMUS.US): Overnight, it rose by 1.45%, among which the TMUS 280325 C 270 call option with a strike price of $270.0, expiring on March 28, 2025, traded 10,800 contracts and the option increased by 50.0%.

The company announced the issuance of senior notes totaling $3.5 billion, planned to be used for general corporate purposes, including potential stock repurchases, dividend distribution, and debt refinancing. Additionally, over the past 10 years, T-Mobile’s stock performance has outperformed the market with an annualized return rate exceeding market by 12.61%, and an average annual return rate of 23.38%.

First Solar, Inc.(FSLR.US): Overnight, it fell by 3.89%, including the FSLR 150127 P 120 put option with a strike price of $120.0, expiring on January 15, 2027, which traded 7,700 contracts and the option fell by 0.48%, indicating that investors are betting on a long-term bearish trend for the stock.

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.

Options IV Unusual Movements:

Core Scientific Inc Ordinary Shares - New(CORZ.US): On the same day, the total options trading volume reached 158,700 contracts, with put options accounting for 37.67% of the total volume traded and call options accounting for 62.33%. The implied volatility was at 137.07%.

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

Note: Implied volatility is an estimate of 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, alongside time value and directional movement, embodies 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