Market Overview

By the close of trading, the Dow Jones Industrial Average(DJI.US) had fallen by 0.95% to 40,829.0 points, the NASDAQ(IXIC.US) dropped 0.87% to 17,689.66 points, and the S&P 500 index(SPX.US) declined 0.77% to 5,606.91 points.

Notably, the trading volume for S&P 500 (S&P 500 index(SPX.US) ) put options reached 1.8219 million contracts, while call options totaled 1.4803 million contracts, resulting in a put/call volume ratio of approximately 1.23. This indicates a strong bearish sentiment among investors towards the index.

Among them, a specific put option, SPXW 200625 P 4325, saw a trading volume of 46,700 contracts, with a VOL/OI ratio of 405.69. The strike price for this contract is $4,325.00, which increases by 21.29%.

Top 10 Options Trading Volume:

Palantir Technologies(PLTR.US): Overnight, shares fell by 12.05%. The total options volume for the day reached 1.78 million contracts, an increase of 546,100 from the previous day, representing a 0.44 times increase. Open interest stood at 3.64 million contracts. This marks the largest drop since April 4, with a trading volume of $21.6 billion, making both stock and options the most traded in the U.S. Despite posting strong first-quarter earnings and raising its full-year guidance, the market remains concerned about potential future growth slowdowns, with expectations already priced into the stock.

NVIDIA Corporation(NVDA.US): Shares fell by 0.25% overnight. The total options volume for the day was 1.75 million contracts, up by 210,700 from the previous day, a 0.14 times increase. Open interest was at 22.29 million contracts.

Tesla Motors, Inc.(TSLA.US): Shares dropped 1.75% overnight. The total options volume for the day was 1.26 million contracts, a decrease of 440,800 from the previous day, representing a 0.26 times decrease. Open interest stood at 8.55 million contracts.

Hims & Hers Health Inc Ordinary Shares - Class A(HIMS.US): Shares surged 18.12% overnight. The total options volume for the day reached 700,000 contracts, an increase of 310,400 from the previous day, representing an increase of 0.8 times. Open interest was at 750,000 contracts. The company reported a 111% year-over-year revenue increase for Q1 to $586 million, exceeding market expectations. Total subscription users grew by 38% to 2.37 million, with average monthly revenue per user rising 53% to $84.

Advanced Micro Devices, Inc.(AMD.US): Shares fell by 1.96% overnight. The total options volume for the day was 690,000 contracts, an increase of 279,700 from the previous day, a 0.69 times increase. Open interest stood at 3.7 million contracts.

Apple Inc.(AAPL.US): Shares decreased by 0.19% overnight. The total options volume for the day was 650,000 contracts, a decrease of 323,600 from the previous day, representing a 0.33 times decrease. Open interest was at 5.05 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:

Unity Software Inc.(U.US): Shares fell by 0.7% overnight. The call option U 090525 C 28, with a strike price of $28.00 and expiring on May 9, 2025, saw a trading volume of 10,600 contracts, and the option price dropped by 50.0%.

Hims & Hers Health Inc Ordinary Shares - Class A(HIMS.US): Shares surged 18.12% overnight, with total options volume reaching 700,000 contracts. Notable options activity includes:

• The put option HIMS 090525 P 45, with a strike price of $45.00 and expiring on May 9, 2025, traded 11,300 contracts, and the option price fell by 83.21%.
• The put option HIMS 200625 P 45, with a strike price of $45.00 and expiring on June 20, 2025, traded 7,300 contracts, and the option price decreased by 46.57%.

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:

Beyond Meat(BYND.US): Shares rose by 1.79% overnight, with total options volume reaching 8,100 contracts. The implied volatility increased to a yearly high of 347.62%. The company announced the launch of Beyond Chicken Pieces in Kroger stores nationwide.

Weight Watchers International, Inc.(WTW.US): Shares surged 22.53% overnight, with total options volume reaching 18,400 contracts. The implied volatility rose to 326.36%. Last week, the company announced pharmacy integration with LillyDirect provider Gifthealth.

High IV stocks:

Data source: Barchart, as of May 6, 2025, Eastern Time.

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