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A trader who bet against Nvidia Corp. in the options market made over $6.5 million as shares of the company dropped. The trader purchased 60,000 contracts of a $119/$115 put spread for about $1.23 million, betting on shares falling below $119 by Friday. The trade was successful as Nvidia's shares dropped as much as 6.5% to below $119 due to concerns about US restrictions on chip sales to China. The trader then closed their position, potentially pocketing over $6.5 million in total. [Extracted from the article]

Options markets have shown little reaction to the failed assassination attempt on former President Donald Trump, with 10-year Treasury volatility increasing slightly and VIX futures decreasing. The S&P 500 Index and traditional safe havens like gold, the dollar, and Treasuries have experienced relatively low volatility. The lack of significant market impact is attributed to the steady rise of tech stocks and the expiration of puts that have become worthless. While there has been some speculation about potential election and post-election uncertainty, overall market volatility remains low. [Extracted from the article]

Shares of the largest US companies in the S&P 500 Index are trading independently, creating a sense of calm in the market. However, the rest of the market is moving more in tandem, which could lead to a spike in volatility. The discrepancy is partly due to significant gains from companies like Nvidia, while many other stocks are actually down. The low correlation between these two groups has helped depress the VIX index, but volatility could increase with the upcoming presidential election and Federal Reserve interest-rate cuts. [Extracted from the article]

Shares of Chewy Inc. and Petco Health and Wellness Co. experienced a brief surge after Keith Gill, also known as "Roaring Kitty," posted a cartoon image of a dog. Chewy saw a 34% increase, the largest intraday gain since June 2019, while Petco jumped up to 12%. However, both stocks quickly returned to their previous levels, with Chewy closing down 0.3% and Petco gaining 0.3%. Gill gained attention in 2021 for rallying retail investors around GameStop Corp., and his recent posts have reignited interest in meme stocks. Chewy has seen increased options volume, and the sudden swings in stock prices have not been commented on by representatives from either company. [Extracted from the article]

Traders are closely watching the upcoming French election, UK elections, and the US presidential debate, as these events have the potential to impact economic policies and currency trajectories. French election uncertainty has led to increased volatility and a weaker euro, while the US candidates' positions on tariffs, globalization, and the Federal Reserve could affect expectations for the US dollar. European stock markets are divided, with French volatility levels remaining high. Traders are hedging their positions, but overall nervousness is higher in Europe compared to the US. [Extracted from the article]

Traders are closely watching the upcoming French election, UK vote, and US presidential debate, as these political events have the potential to impact economic policies and market volatility. The French election has led to increased volatility and a weaker euro, while the US candidates' positions on tariffs, globalization, and the Federal Reserve could affect the trajectory of the dollar. European stock markets are divided, with French volatility levels remaining high. Traders are hedging their positions with bearish contracts and there is a premium for put options on the euro-dollar and euro-Swiss franc. European bond market volatility has also increased, particularly in relation to French yields. Overall, there is more nervousness in Europe compared to the US, possibly due to early assumptions about a Biden-Trump rematch. Yuan options are reflecting concerns about increased protectionism from US leaders. These political events are occurring during a typically quiet trading period, which could lead to limited liquidity and market dislocations if volatility increases. [Extracted from the article]

Friday's US options expiration, known as 'triple-witching,' is expected to bring short-term market swings as $5.5 trillion worth of options tied to indexes, stocks, and exchange-traded funds expire. This expiration coincides with index rebalancing, which could lead to increased volatility. The expiring value tied to calls is 11 times greater than the value of puts, indicating a growing demand for upside exposure. While the impacts of quarterly option expiries may be overstated, even minor gyrations in stocks could diverge from the recent low volatility. [Extracted from the article]

GameStop Corp. investors have experienced a volatile two-week period, with the stock price returning to its starting point after a glitch disrupted the company's annual meeting and a prominent stockholder adjusted his portfolio. The video-game retailer's shares have seen significant swings in the last 10 sessions, including a 14% jump despite technical difficulties during the adjourned meeting. Keith Gill, known as "Roaring Kitty" online, revealed that he had exited his call options and increased his holdings of GameStop shares. The excitement surrounding GameStop has led to heavy trading and increased outstanding call options, but the stock is currently trading around $28, where it was two weeks ago. The company has raised over $3 billion in new capital in recent weeks. While GameStop's improved cash position has caused some skeptics to close their bearish bets, there are still questions about the retailer's future given its declining sales. [Extracted from the article]

GameStop Corp. investors have experienced a volatile two-week period, with the stock price returning to its starting point after a glitch disrupted the company's annual meeting and a prominent stockholder adjusted his portfolio. The shares have seen significant swings in each of the last 10 sessions, including a 14% jump despite technical difficulties during the meeting. Keith Gill, known as "Roaring Kitty" online, revealed that he had exited his call options and increased his holdings of GameStop shares. The excitement surrounding GameStop has led to heavy trading and a surge in outstanding call options. Despite the fluctuations, the stock closed just below $29, only slightly higher than two weeks ago. The company has taken advantage of the stock's movements to raise capital, but questions remain about its future given its declining sales. [Extracted from the article]

Keith Gill, also known as "Roaring Kitty," has reportedly exited his options position in GameStop Corp. and increased his holdings of common shares. A screenshot on Gill's Reddit account showed that he no longer had the 120,000 GameStop call options that were set to expire, but instead had over nine million common shares. It appears that Gill may have used some of his cash to add to his stake of common shares. The surge in trading came as GameStop was scheduled to hold a shareholder meeting, which was later postponed due to technical difficulties. Gill's actions and posts on Reddit have influenced investors to buy GameStop shares in recent weeks. [Extracted from the article]

The holdings of GameStop call options owned by Keith Gill, also known as 'Roaring Kitty,' have decreased, suggesting that he may have sold some of his position. The volume of GameStop $20 calls surged on Wednesday and Thursday, indicating selling pressure. The number of outstanding contracts dropped by 34% to 111,818, fewer than what Gill claimed to have bought. The surge in trading coincided with GameStop's postponed shareholder meeting. Gill has not addressed the recent trades or his holdings, leaving the impact on shares uncertain. [Extracted from the article]

The Federal Reserve's announcement of projections for only one interest-rate cut in 2024 has disappointed Wall Street traders who were hoping for more aggressive reductions. Despite this, the S&P 500 Index and Nasdaq 100 Index remain near record highs, driven by gains in rate-sensitive technology shares. Traders are now analyzing Chair Jerome Powell's press conference for signals on whether the market's dovish bid is overdone. The Fed's cautious approach is influenced by inflation data and a wait-and-see approach to monetary policy. [Extracted from the article]

GameStop Corp. experienced a significant increase in trading volume for its $20 calls expiring on June 21, with most of the activity occurring after 3:30 p.m. Keith Gill, also known as 'Roaring Kitty' online, claimed to have bought 120,000 of these contracts in a social media post. The news of Gill's position caused GameStop shares to nearly double in value before declining. It remains uncertain whether Gill will exercise the contracts or close out his position, but the possibility of him exiting his position could impact the stock's performance. [Extracted from the article]

The number of call options traded in Apple Inc. reached its highest level since 2021 as shares rebounded and reached a new all-time high. The tech firm saw a significant increase in call trading volume, with calls outnumbering puts two-to-one. The high volume of calls and shifts in implied volatility suggested that investors were buying calls alongside the rise in shares. This surge in call options followed a decline in Apple's shares after its developer conference, but shares quickly recovered as investors had a more positive outlook on the event. [Extracted from the article]

Traders are preparing for increased volatility in the market due to two major events: a report on consumer prices and the Federal Reserve's rate decision. The options market predicts that the S&P 500 Index will move 1.25% in either direction on that day. While the market expects the central bank to keep rates steady, the inflation report and Fed Chair Jerome Powell's press conference will provide more insight into potential interest rate cuts. Investors are also focusing on job growth and the possibility of a dovish meeting, as well as hedging against a hawkish shift in the longer-term Fed projections. The bond market remains volatile, while the FX market sees increased volatility in the Bloomberg Dollar Index and a bearish sentiment towards the US dollar. [Extracted from the article]

Options traders are anticipating increased volatility in the coming weeks due to three central bank rate decisions. Traders are particularly bearish on the euro, with implied volatility rising to its highest level in nearly a month. The European Central Bank is expected to cut rates, while the Federal Reserve is expected to hold rates steady. US equities options traders are also pricing in higher implied volatility for upcoming events, including the June jobs report and the Fed's decision on interest rates. Small caps and Treasury options are also seeing heightened expectations for swings in the market. [Extracted from the article]

Super Micro Computer Inc., a server maker, experienced a significant drop in its stock price, ending what had been its best week on record. Despite the drop, the stock had risen 8.5% for the week and has seen significant gains in recent months, making it one of the hottest names in artificial intelligence. The company's CEO, Charles Liang, has seen his wealth quadruple this year to $7.8 billion. Super Micro is projected to make $14.5 billion in revenue this fiscal year and is expected to be a primary winner in the growing market for AI servers. [Extracted from the article]

Super Micro Computer Inc., a server maker, experienced a significant drop in its stock price after a lengthy rally. Despite the decline, the stock has seen substantial gains recently, particularly in the field of artificial intelligence. The CEO of Super Micro, Charles Liang, has seen his wealth quadruple this year. The company is projected to make $14.5 billion in revenue this fiscal year and is expected to be a primary winner in the growing market for AI servers. However, some analysts have cautioned about the scale of the stock's move. [Extracted from the article]

Super Micro Computer Inc. experienced a volatile trading day, with shares initially rising before sharply declining. Despite this, the stock had a strong week, rising over 35%. Super Micro has become a popular choice for investors interested in artificial intelligence, with the stock rising in 18 of the past 20 sessions and more than tripling in value this year. However, some analysts have expressed caution about the stock's rapid growth. Super Micro's CEO, Charles Liang, has seen his wealth quadruple this year, making him the biggest percentage gainer on the Bloomberg Billionaires Index. [Extracted from the article]

Digital World Acquisition, a blank-check firm seeking to take Donald Trump's media company public, saw a 16% increase in its shares after receiving approval from the US Securities and Exchange Commission (SEC). The approval allows for the proposed business combination with Trump Media & Technology Group, which owns the social media platform Truth Social, to move forward. The merger has been delayed for over two years due to regulatory issues. Digital World expects to announce the date of the shareholder vote within two business days. The company also announced new proposed board members, including former officials from the Trump administration. Other stocks tied to Trump, such as Rumble Inc. and Phunware Inc., also experienced increases in their share prices. [Extracted from the article]

The stock market rally on Wall Street is being compared to the mania of the early days of the pandemic, with all major gauges at or near record highs. However, investors are not buying derivative contracts that would give them a chance at a big payday if stocks continue to surge. This lack of demand for call options suggests that there is a sense among those on Wall Street that the best of this rally is coming to an end. The shifting macroeconomic landscape, with expectations of fewer interest rate cuts and less exuberant earnings reports, is causing traders to prepare for a more gradual increase in stock prices. Despite this, investors are still holding onto hope, as equity exposure has increased and options markets show little fear of a potential selloff. The growth of option-selling funds also creates favorable dynamics for further gains. While less risk-taking does not necessarily mean a pullback in stocks, it could be seen as a positive signal for the market. [Extracted from the article]

According to Bloomberg, traders are currently showing the least concern about volatile stock market swings since before the Covid-19 pandemic. The Cboe Volatility Index (VIX), which measures the 30-day implied volatility of the S&P 500, closed at its lowest level since November 2019. This is due in part to a decreased demand for hedges to protect against a market downturn, as the S&P 500 has been steadily climbing. Slightly softer inflation data this week has also renewed optimism that the Federal Reserve may cut interest rates earlier, leading to a rise in stock prices. [Extracted from the article]

Hedge funds have increased their exposure to technology companies leading the way in artificial intelligence, such as Nvidia, Amazon, Meta Platforms, and Microsoft. However, they have also reduced their positions in Thermo Fisher Scientific, Snap, and Advanced Micro Devices. The S&P 500 and Nasdaq 100 Index both saw gains in the first quarter of 2024. Technology accounted for the largest weighting in hedge fund portfolios, followed by consumer discretionary. Tiger Global Management increased its stake in Alphabet, while Renaissance Technologies exited Exxon Mobil and increased its weightings in financial stocks. Two Sigma Advisers added Walmart and increased its weighting in healthcare stocks, while decreasing its weighting in technology. Scion Asset Management exited positions in Oracle and Alphabet, with JD.com being its largest holding. Berkshire Hathaway reduced its position in Apple but it still remains its largest holding. Microsoft was the most valuable overall holding. [Extracted from the article]

Despite a decline in GameStop Corp.'s shares, some options traders are still betting on a significant increase in the stock's value this week. The most-traded call options have strikes at $100 and $128, suggesting a potential tripling or quadrupling of the stock by Friday. While options traders initially sought more modest gains, the recent slump in shares has led to increased activity in far out-of-the-money calls. The options are expensive in terms of implied volatility but relatively cheap on an outright basis. [Extracted from the article]

GameStop Corp. shares have surged recently, driven by the return of Keith Gill, also known as 'Roaring Kitty,' who led the retail mania in 2021. However, there is one key difference from last year's meme stock frenzy: the lack of a frenzy of bullish options buying. While day traders have been buying up shares and short-dated call options, the number of call options outstanding in GameStop is only around 25% of its 2021 peak, and the volume of calls traded is much lower than in January 2021. Traders have likely already bought shares to hedge their positions, reducing the risk of a spiral higher. Additionally, the lessons learned from the previous meme stock mania have made quant/hedge funds better equipped to handle these situations, potentially leading them to participate in the squeeze but also exit ahead of retail traders. [Extracted from the article]

Traders have been quietly accumulating positions in GameStop Corp. options leading up to the recent surge in the stock. Call option volume on Friday reached nearly 300,000, the second most active day this year. This activity coincided with GameStop's significant increase in stock price over the past three weeks. The surge in trading volume and options activity has been observed on online forums like Reddit's WallStreetBets and StockTwits. Some analysts find the timing of this activity to be suspicious. [Extracted from the article]

Options to protect against a stock market crash are currently the cheapest they have been in nine years, according to Bloomberg. The drop in the Cboe Volatility Index (VIX) and the implied volatility of VIX options, known as the VVIX, indicates that traders are not spending money on VIX call options, which are typically used as insurance against a major stock sell-off. The S&P 500 index has remained relatively stable, and there is speculation that the Federal Reserve may cut interest rates this year. While it is uncertain if the VVIX will follow a similar pattern as in the past, some experts believe that opportunistic hedgers may take advantage of the low VIX/VVIX setup through call purchases. [Extracted from the article]

Nasdaq Inc. is planning to seek regulatory approval for short-duration options on a range of commodities and Treasury exchange-traded funds (ETFs). The options contracts would expire on Mondays, in addition to the traditional Friday and Wednesday expiries. This move aims to meet the growing demand for equity derivatives that expire within hours rather than days. Nasdaq believes that this change will increase the availability of products for heavily traded ETFs. [Extracted from the article]

US corporate earnings for the quarter have largely exceeded expectations, with 81% of S&P 500 firms reporting upside surprises. This has boosted sentiment in the market, despite geopolitical tension and fading hopes for Federal Reserve interest-rate cuts causing a decline in the S&P 500. The earnings season has provided opportunities for stockpickers, as stocks have moved out of sync with each other. However, the S&P 500 has experienced a decline during this earnings season, which is unusual. Big Tech shares have seen significant swings after their results, with three out of four firms surpassing expectations. S&P 500 margins have recovered due to consumer prices growing faster than producer prices, but rising commodity prices may erode this progress. The big lenders have delivered mixed results, with JPMorgan and Wells Fargo remaining conservative in their guidance, while Goldman Sachs rallied. Loan growth is expected to remain muted in the coming months. [Extracted from the article]

Investors in the stock market are starting to reconsider their reluctance to hedge their portfolios as geopolitical risks and the Federal Reserve's interest rate policies create market uncertainty. Traders are buying put options to protect against further declines in stock prices. The rising demand for insurance is driving up costs on market hedges, particularly for contracts expiring in a few months. However, options contracts remain relatively cheap compared to historical lows, providing an opportunity for investors to obtain affordable insurance. The choice of hedging strategy depends on the trader's assessment of the current state of the equities selloff. [Extracted from the article]

Traders are considering selling call options on Nvidia Corp.'s stock as a way to hedge against potential price swings and earn extra yield. Some market watchers believe that call options are offering attractive yields for investors who expect the stock's gains to be limited in the near term. However, selling call contracts without owning the stock is seen as risky. Nvidia's shares have fallen more than 20% from their all-time high in March, but the volatility of AI stocks makes their price movements unpredictable. [Extracted from the article]

The Cboe Volatility Index (VIX) has risen above 20 for the first time since October, indicating increased volatility in US stocks. This spike in volatility is attributed to escalating tension in the Middle East, as well as doubts about the Federal Reserve's plans for interest-rate cuts and the third consecutive weekly loss for stocks. Investors have responded by purchasing broad market hedges that they had previously avoided. Despite this increase in volatility, the VIX level is still within its historical average range. [Extracted from the article]

Traders who have been complacent about market risks are now starting to hedge their positions as the S&P 500 Index experienced a volatile week. Despite geopolitical tensions and uncertainty over interest rates, demand for broad market insurance had been low in the first quarter as US stocks reached new highs. However, the desire to protect against a downturn has increased recently, with investors adding on hedges and pushing up the cost of bearish put options. Some investors are also using spreads as a cheaper alternative for protection. The uncertainty surrounding geopolitical tensions, the upcoming US presidential election, and central bank policy has contributed to the need for hedging. [Extracted from the article]

Investors are preparing for the next phase of the stock market, uncertain whether stocks will continue to rise or crash. Traders are showing little demand for put options that protect against minor corrections, but are quietly picking up tail-risk hedges to guard against extreme market swings. While Wall Street appears unconcerned about a small slump, there is growing worry that an unpriced risk could disrupt the bull market. The market has seen strong gains in the first quarter, particularly in a few key stocks, leading investors to seek value in other areas such as small-cap stocks. Confidence in a soft landing scenario is increasing, and retail investors are showing bullish options market positioning. Investors are less concerned about a slight pullback, but are positioning themselves for a potential volatility spike. The timing and magnitude of interest rate cuts from the Federal Reserve, as well as the performance of AI-driven stocks, are seen as potential risks. However, for now, fears are contained and hopes for a solid earnings season are driving valuations higher. Options traders are more focused on buying "FOMO insurance" rather than hedging against broad market risks. [Extracted from the article]

Trading options tied to former president Donald Trump's media company, Trump Media & Technology Group Corp., has attracted meme-stock traders and Wall Street professionals. Bill Gross, a renowned investor, has highlighted the high costs associated with these derivatives due to expectations of wild swings in the stock. Gross himself has sold puts and calls on the company, betting that shares will stay between $45 and $95. The surge in Trump Media's stock has led to increased interest from investors using various strategies, including call and put options, short bets, and warrants. However, shorting the stock is expensive, with annual financing costs of 400% to 500%. The limited availability of shares and the company's volatile nature have contributed to its high volatility. Options trading has been active in both directions, with calls and puts being heavily traded. As of Thursday morning, Trump Media was trading at around $64. [Extracted from the article]

A trader or group of traders made a profit of around $300 million by closing out bullish options positions in Arm Holdings PLC. The contracts were opened in January and February, and the target was call options expiring in January 2026 with strike prices of $67.50, $70, and $72.50. The trader(s) decided to cash in on Tuesday and Wednesday, selling the contracts for a higher price than they were bought for. The reason for selling at this time is unknown, but it could be due to various factors such as reducing exposure or securing profits before the end of the quarter. Despite the recent trade, there are still in-the-money call options remaining, indicating that someone is still hoping for further profits. The trading volume on Tuesday was more than double the average of the past month. [Extracted from the article]

Retail investors are experiencing a resurgence in meme stock mania, driven by positive messaging from the Federal Reserve, GameStop's expected earnings, and high stock prices. Individual investors are buying call options to position themselves for further market rallies, while also investing in Reddit and other popular stocks. Institutional traders remain active but are showing some caution, as technical strategists predict a potential correction due to stretched valuations. The excitement is not limited to stocks, as digital assets like Bitcoin have also seen significant gains. Overall, sentiment remains bullish, with retail traders enjoying the current market environment. [Extracted from the article]

Retail investors are experiencing a resurgence in meme stock mania, driven by positive messaging from the Federal Reserve, GameStop's expected earnings, and high stock prices. Individual investors are buying call options to position themselves for further market rallies. While institutional traders remain cautious, retail traders are going all-in, disregarding stretched valuations. The excitement is not limited to stocks, as digital assets like Bitcoin have also seen significant gains. Despite warnings of a potential correction, retail traders are enjoying the current market environment. [Extracted from the article]

Digital World Acquisition Corp., the firm taking Donald Trump's media company public, saw its share prices soar by 35% on Monday. However, traders also purchased a significant number of put options that protect against the stock losing almost all of its value by mid-April. While some traders may be making this bet, there are other more likely reasons for buying these options, such as satisfying broker requirements or taking advantage of the stock's volatility. Overall, the increased trading activity suggests some interest in covering against the shares falling back. [Extracted from the article]

The latest earnings season in the US showed better-than-expected results, with fourth-quarter earnings growing by nearly 8% compared to expectations of a 1.2% rise. Big tech companies, such as Nvidia, performed well and helped boost the overall results of the S&P 500. Companies that focused on cost-cutting measures, including layoffs, saw improved margins. Forward-looking guidance also played a significant role in investor reactions, with firms that revised their future outlooks to the upside experiencing gains. However, Europe's earnings trailed behind the US due to regional economic struggles and the absence of technology mega-stars. [Extracted from the article]

Investors are punishing New York Community Bancorp for recent issues, but there is no widespread concern about a regional banking crisis. Options and credit markets show little anxiety beyond products tied to the bank. The decline in NYCB's shares does not seem to be affecting other major regional lenders. Investors believe that the problems facing NYCB are unique to that specific lender and do not indicate a broader crisis. The demand for downside protection appears to be specific to NYCB rather than the banking sector as a whole. The banking system is considered sound and resilient, and regulators are monitoring the situation. [Extracted from the article]