Yesterday was a big day in the markets with major indexes dropping through support and suffering large losses.
Option volume went through the roof, as it usually does on volatile days like that. Let’s look at some notable option activity from yesterday.
The most notable stock was Smile Direct Club (SDC) which saw option volume of over 340,00 contracts. This stock has been targeted by the Reddit / wallstreetbets crowd as it was also the most mentioned stock on that platform.
SDC has also seen implied volatility going through the roof, rising from 55% to 176% in recent months.
Palantir (PLTR), Tesla (TSLA), Apple (AAPL) and Contextlogic (WISH) made up the top 5 most mentioned stocks.
Other stocks to see unusual options volume were Affirm Holdings (AFRM), Gilead (GILD), Cemeco (CCJ), WYNN Resorts (WYNN), Alcoa Corporation (AA), Dow Inc (DOW) and Novavax (NVAX).
AFRM traded three and a half times more option volume than usual with 76% of those being in call options.
GILD traded three times the average number of contracts with 88% being call options.
CCJ traded nearly three times the average volume with 90% being call options.
WYNN traded two and a half times average volume but only 53% were in the calls.
AA traded one and half times the average volume with 46% being in the call options. One particularly active strike was the $48 call strike expiring on October 15th. That contract trade over 4,300 times.
DOW traded two times the average volume with 44% being in call options. The most active strike for DOW was the $62.50 call option expiring on November 19th with over 1,100 contracts traded.
NVAX traded fewer total contracts than normal, however, there was a lot of activity in the October 15, $195 strike put options with over 2,000 contracts traded.
Learn more about options trading here.