Market Overview

As of market close, the Dow Jones Industrial Average(DJI.US) fell by 0.25% to 42,319.74 points; the NASDAQ(IXIC.US) dropped by 0.83% to 19,298.45 points; and the S&P 500 index(SPX.US) declined by 0.53% to 5,939.3 points.

Notably, the trading volume for S&P 500 (SPX) put options reached 2.017 million contracts, while call options saw a volume of 1.643 million contracts, resulting in a put/call ratio of approximately 1.23. This indicates a stronger bearish sentiment among investors regarding the index. Among these, the SPXW 240625 P 5000 put option recorded a trading volume of 5,700 contracts, with a VOL/OI ratio of 41.54. The strike price for this contract is 5,000, and the option price increased by 41.67%.

Top 10 Options Trading Volume:

Tesla Motors, Inc.(TSLA.US): Overnight, Tesla shares fell by 14.26%. The total options volume for the day reached 7.34 million contracts, an increase of 5.212 million from the previous day, representing a 2.45-fold increase. The open interest stands at 9 million contracts. 

On Thursday, Elon Musk continued to pressure Congress to "kill" President Trump's spending bill, leading Trump to threaten to terminate government subsidies and contracts for Tesla.

NVIDIA Corporation(NVDA.US): Overnight, Nvidia shares dropped by 1.36%. The total options volume for the day reached 3.33 million contracts, up by 1.1506 million from the previous day, a 0.53-fold increase. The open interest is at 22.91 million contracts.

Palantir(PLTR.US): Overnight, Palantir shares fell by 7.77%. The total options volume for the day reached 1.19 million contracts, an increase of 460,500 from the previous day, a 0.63-fold increase. The open interest stands at 3.6 million contracts. 

Republican lawmakers strongly oppose Palantir's expanded role in handling U.S. government data, a move facilitated by an executive order from the Trump administration to promote inter-agency data sharing.

Apple Inc.(AAPL.US): Overnight, Apple shares declined by 1.08%. The total options volume for the day reached 980,000 contracts, up by 152,200 from the previous day, a 0.18-fold increase. The open interest is at 5.41 million contracts.

Amazon.com, Inc.(AMZN.US): Overnight, Amazon shares rose by 0.33%. The total options volume for the day reached 840,000 contracts, an increase of 434,500 from the previous day, a 1.07-fold increase. The open interest stands at 4.2 million contracts. 

A source revealed that Amazon (AMZN) is developing software for humanoid robots, which could eventually replace delivery drivers. This move marks Amazon's step towards automating its global parcel delivery operations.

CoreWeave(CRWV.US): Overnight, CoreWeave shares fell by 17.2%. The total options volume for the day reached 730,000 contracts, up by 22,600 from the previous day, a 0.03-fold increase. The open interest is at 730,000 contracts.

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

Options Activity Tracking:

Tesla: Overnight, Tesla shares fell by 14.26%, with significant activity observed in several call options with strike prices over $300:

• TSLA 060625 C 302.5: Call option with a strike price of $302.5, expiring on June 6, 2025, saw a volume of 40,900 contracts, dropping by 95.08%.
• TSLA 060625 C 317.5: Call option with a strike price of $317.5, expiring on June 6, 2025, had a volume of 64,200 contracts, declining by 97.98%.
• TSLA 060625 C 312.5: Call option with a strike price of $312.5, expiring on June 6, 2025, recorded a volume of 49,400 contracts, down by 97.54%.
• TSLA 060625 C 307.5: Call option with a strike price of $307.5, expiring on June 6, 2025, saw a volume of 32,300 contracts, decreasing by 96.52%.
• TSLA 060625 C 322.5: Call option with a strike price of $322.5, expiring on June 6, 2025, had a volume of 51,700 contracts, falling by 98.27%.

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:

Virgin Galactic(SPCE.US) shares fell over 7% overnight, with total options trading volume reaching 12,000 contracts and implied volatility at 247.95%.

Space-related stocks collectively declined overnight. SpaceX founder Elon Musk stated that, in light of President Trump's announcement about canceling government contracts, SpaceX will begin retiring its Dragon spacecraft immediately.

High IV stocks:

Source: Barchart, data as of Eastern Time, June 5, 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