Unlocking the Buzz: Surge of Options Activity in ADBE, AMD, AXON

Written By Michael Gary Scott

High Volume Options Activity Unleashed

Unleashing a torrent of trading activity on Monday, options markets have been heaving with a seismic surge in Adobe Inc (Symbol: ADBE) shares. The uproar is evidenced by a staggering 23,137 contracts traded today, equivalent to 2.3 million underlying shares, shaking the rafters with 81.7% of ADBE’s average daily trading volume over the past month. Noteworthy among the flurry is the $515 strike call option expiring May 10, 2024, with a substantial 1,630 contracts traded, representing around 163,000 underlying shares of ADBE. This surge of activity is exemplified in the vivid chart below.

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AMD’s Options Market Ablaze

Turning up the heat, Advanced Micro Devices Inc (Symbol: AMD) has set the options market ablaze with a remarkable 379,688 contracts traded today. This towering figure translates to a substantial 38.0 million underlying shares, lighting up the skies with 69.6% of AMD’s average daily trading volume over the past month. At the forefront of the tumult is the $160 strike call option expiring on May 10, 2024, with an impressive 31,179 contracts exchanging hands, revealing approximately 3.1 million underlying shares of AMD. The firestorm in the options market is vividly depicted in the chart below.

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AXON Riding the Wave

Riding the crest of the wave, Axon Enterprise Inc (Symbol: AXON) has seen a surge with 3,282 contracts traded thus far today. This volume equates to about 328,200 underlying shares, with the crescendo hitting 69.3% of AXON’s average daily trading volume over the past month, totaling 473,680 shares. Standing out amidst the tumult is the $280 strike put option expiring on May 17, 2024, with 337 contracts changing hands, representing around 33,700 underlying shares of AXON. The rush of activity for AXON is vividly illustrated below.

See also  The Nasdaq's Record-Breaking Surge: Unveiling the Key Stocks Behind the Milestone The Nasdaq Composite Ascends to Unprecedented Heights

After years of dormancy, the Nasdaq Composite (NASDAQINDEX: ^IXIC) triumphantly shattered its 2021 record on the final day of February. While the future trajectory of the Nasdaq remains obscured, astute investors can examine the pivotal stocks that likely propelled the index to this remarkable zenith.

The Power of Nvidia

Envision no astonishment when recognizing the integral role played by artificial intelligence chip purveyor Nvidia (NASDAQ: NVDA) in the Nasdaq's meteoric ascent. Nvidia's substantial 240% surge over the past year, dwarfing the Nasdaq's 40% climb, coupled with its weighty 5.03% index representation, elucidates its proclivity as a major driving force behind the index's recent success.

The Amazon Phenomenon

Fronted by e-commerce and cloud behemoth Amazon (NASDAQ: AMZN), another stalwart that has outpaced the index with an 87% upsurge in the last year, doubling the Nasdaq's performance. With a weight of approximately 6.45% - ranking as the third-largest in the index - Amazon's triumph significantly influences the broader index's trajectory.

The Dominance of Alphabet

Underestimated as a colossal contributor to the Nasdaq Composite, internet titan Alphabet (NASDAQ GOOG)(NASDAQ: GOOGL) stealthily ranks as a substantial segment due to its dual-share structure. Notably, with the amalgamation of Class A and C shares, Alphabet surpasses Amazon as the Nasdaq's third-highest weighting at 6.72%. The stock's impressive 50% surge over the past year fortifies the Nasdaq's soaring trajectory.

Impending Storms: Apple and Microsoft's Looming Influence

However, looming on the horizon are the ramifications of Nasdaq's heaviest hitters, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), collectively constituting a colossal 23.8% of the entire index. Apple, trailing the index by nearly half in the past year, and Microsoft, exhibiting a robust 65% price appreciation, face elevated valuations that could potentially impede their future growth. The divergent paths of these tech titans may wield a profound impact on the Nasdaq's trajectory.

The potential acme of these stocks to languish or falter owing to their lofty valuations poses a looming threat to the Nasdaq's exuberance. The tug-of-war between ascending and descending stocks will likely be pivotal in shaping the index's course ahead.

For investors navigating these turbulent waters, deploying a diversified investment approach, adhering to long-term investment perspectives, and gradually acquiring positions can safeguard against unwelcome market volatilities.

Should you invest $1,000 in NASDAQ Composite Index right now?

Investor Insights: NASDAQ Composite Index The Unvarnished Truth About Investing in NASDAQ Composite Index

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Dive Deeper into Options Market

For those eager to delve deeper into the options market and explore the plethora of different available expirations for ADBE, AMD, or AXON options, StockOptionsChannel.com is the treasure trove waiting to be explored.

Today’s Most Active Call & Put Options of the S&P 500 »

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