Market Overview

As of last Friday’s market close, the Dow Jones Industrial Average(DJI.US) fell by 1.9% to 45,479.6 points; the NASDAQ(IXIC.US) dropped by 3.56% to 22,204.43 points; and the S&P 500 index(SPX.US) slid by 2.71% to 6,552.51 points. U.S. stocks experienced a “Black Friday,” with both the S&P and Nasdaq posting their largest single-day declines since April. Chinese concept stocks were also affected, with the Nasdaq Golden Dragon China Index down 6.10% on Friday. Crude oil and cryptocurrencies suffered heavy losses simultaneously, as investors flocked to safe-haven assets like government bonds and gold.

In terms of news, U.S. President Trump threatened to sharply increase tariffs in response to other countries imposing stricter controls on the export of rare earth minerals. He stated he would raise tariffs significantly, causing investors to worry that trade relations between major powers would continue to deteriorate.

It’s worth noting that the trading volume of S&P 500 put options reached 3.6864 million contracts, while call options were at 2.7195 million contracts, with a put/call ratio of approximately 1.36, indicating strong bearish sentiment among investors. Among these, a particular SPX put option, SPXW 131025 P 6585, saw a trading volume of 18,300 contracts, with a VOL/OI ratio of 77.34. The strike price for this contract is $6,585.00, and the price of this option surged by 1,268.73%.

On Sunday, U.S. President Trump expressed his willingness to negotiate with China, sending U.S. stock index futures higher and prompting a rebound in oil prices. Previously, market sentiment had been hit hard by escalating trade tensions, but this news has helped to improve the mood. As of press time, all three major U.S. stock index futures rose before the opening.

Top 10 Options Trading Volume:

NVIDIA Corporation(NVDA.US): Dropped 4.89% overnight. The total options trading volume for the day reached 5.34 million contracts, an increase of 1.6715 million contracts compared to the previous day, representing a 0.46x rise on a day-over-day basis. Open interest stood at 20.05 million contracts.

Tesla Motors, Inc.(TSLA.US): Dropped 5.06% overnight. The total options trading volume for the day reached 3.85 million contracts, an increase of 1.8168 million contracts compared to the previous day, representing a 0.89x rise on a day-over-day basis. Open interest stood at 8.38 million contracts.

Advanced Micro Devices, Inc.(AMD.US): Dropped 7.72% overnight. The total options trading volume for the day reached 2.23 million contracts, an increase of 641,000 contracts compared to the previous day, representing a 0.4x rise on a day-over-day basis. Open interest stood at 4.55 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:

Peloton Interactive(PTON.US): Fell 5.31% overnight. PTON 170426 C 13 call option, with a strike price of $13.00 and expiring on April 17, 2026, saw a trading volume of 50,600 contracts; the price of this option decreased by 25.53%.
The PTON 170426 P 5 put option, with a strike price of $5.00 and expiring on April 17, 2026, saw a trading volume of 25,100 contracts; the price of this option increased by 16.67%.

Pony AI Inc.(PONY.US): Fell 8.77% overnight. The PONY 171025 P 18 put option, with a strike price of $18.00 and expiring on October 17, 2025, saw a trading volume of 20,000 contracts; the price of this option surged by 350.0%.

Lyft(LYFT.US): Fell 2.38% overnight. The LYFT 101025 C 18.5 call option, with a strike price of $18.50 and expiring on October 10, 2025, saw a trading volume of 14,100 contracts; the price of this option dropped by 44.72%.

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.

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