How Are Options Big Players Betting on NVDA, META, AMZN, and MSFT?
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The US stock market has entered the bustling stage of Q1 earnings season. Commencing this week, the market will progressively witness the earnings evaluations of tech behemoths like Microsoft and Meta. With last week's tech stock sell-off, the direction of the earnings season's trend has become more uncertain.
In order to capture market signals in advance, this article will take stock of recent options big players' bets on four star tech stocks including $NVDA, $META, $AMZN, and $MSFT. Bullish options for all four tech giants have attracted substantial capital. What does this signal mean?
· Nvidia $NVDA
By tracking the flow of funds, our TradingFlow team discovered that Nvidia's call options with a strike price of $880 expiring on 21 June, 2024, saw a massive influx of capital, with a trading volume of 37,700 contracts.
From the open interest (OI) perspective, this substantial volume of call options has not yet been closed, indicating traders' confidence in Nvidia's future market trends.
· Meta Platforms $META
The scrutiny facing TikTok in the US is likely to benefit Meta in terms of expanding its business. From the perspective of options big players' fund operations, long-term bullish options have garnered favor. For instance, the open interest (OI) of Meta call options with a strike price of $600, expiring on 19 December, 2025, has consistently remained high:
Considering the flow of funds, some options big players have engaged in forward rolling, shifting their positions from call options expiring on June 18, 2026, with a strike price of $950 to $1030. The trading volume amounted to approximately 95,000 contracts, involving about $200 million. This move, transitioning from out-of-the-money to even further out-of-the-money options, suggests that traders believe the previous leverage was not high enough and have decided to further increase their bets.
· Amazon $AMZN
Goldman Sachs lowered its target price for Pinduoduo ($PDD) due to the potential impact of H.R.7521 bill passed by the U.S. House Committee on Energy and Commerce on its cross-border business in March. Which company stands to benefit? Taking into account the U.S. economy, employment, inflation, and consumption, Amazon may stand to benefit.
Option data indicates that some options big players closed out bullish call options expiring on 15 March, 2024, with a strike price of $145, and rolled over to bullish call options expiring on 21 June, 2024, with a strike price of $160. This involved a trading volume of approximately 155,000 contracts, totaling around $300 million.
· Microsoft $MSFT
As the AI industry continues to thrive, more and more companies are joining the fray. Industry leader Microsoft is gradually becoming more subdued, and its stock performance is relatively average. However, there are still large bullish options positions lurking.
Data shows that some options big players have rolled over from call options expiring on 15 March, 2024, with a strike price of $350 to call options expiring on 17 May, 2024, with a strike price of $380. This involved a trading volume of approximately 50,000 contracts.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Before making any financial investment decisions, please ensure you thoroughly understand all aspects of the information and conduct your own research.
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