Options Alert: Tesla to Deliver Model Y Next Month, Total Options Volume Drops on the Day; Meme Stocks GME and AMC Both Plunge Over 10%, But Call Options Volume Surges!

1. Musk expects to deliver autonomous Model Y vehicles next month, one month ahead of schedule.

On May 28, Eastern Time, $Tesla(TSLA.US) options had a total trading volume of 1.6092 million contracts, with call options accounting for 61.72% and put options for 38.28%.

Tesla's open interest was 8.5973 million contracts, with call options accounting for 51.8% and put options for 48.2%.

2. On May 28, Eastern Time, $GameStop(GME.US) stock price fell sharply by 10%.

The company recently announced the purchase of 4,710 Bitcoins, worth over $500 million, as part of its financial reserve assets. Investors may be concerned that this strategy could increase the company's financial risk, especially if Bitcoin prices fall, potentially leading to asset impairment.

On that day, GME options had a total trading volume of 632,900 contracts, with call options accounting for 78.26% and put options for 21.74%.

GME's open interest was 1.5367 million contracts, with call options accounting for 74.32% and put options for 25.68%.

Notable options activity: The call option with an expiration date of May 30, 2025, and a strike price of $35 saw a daily increase in trading volume of 33,800 contracts.

3. On May 28, Eastern Time, $AMC ENT(AMC.US) stock price fell sharply by 13.72%, reversing the gains from Tuesday due to strong Memorial Day weekend box office performance.

AMC and GME have been at the center of the "meme stock" trend in recent years, often driven by retail investor momentum and speculative sentiment. This market dynamic may have played a role in the recent volatility of AMC's stock price.

On that day, AMC Theatres options had a total trading volume of 352,000 contracts, with call options accounting for 72.72% and put options for 27.28%.

AMC Theatres' open interest was 1.4071 million contracts, with call options accounting for 85.75% and put options for 14.25%.

The option with the largest increase in trading volume was the call option with an expiration date of May 30, 2025, and a strike price of $4, trading 37,100 contracts.

4. PDD's earnings fell short of expectations, with Q1 net profit down 47%. The stock price fell for two consecutive days, as investor concerns about slowing growth dominated short-term sentiment.

On May 28, Eastern Time, PDD options had a total trading volume of 233,900 contracts, with call options accounting for 58.93% and put options for 41.07%.

PDD's open interest was 1.5568 million contracts, with call options accounting for 57.43% and put options for 42.57%.

Options Terminology

Implied Volatility: Represents the market's expectation of future stock price volatility, which is essentially an unknown variable.

Using a certain options pricing model, factors such as stock price, option premium, interest rate, and expiration time are input into the pricing formula to derive the implied volatility.

To some extent, it reflects the valuation level of the option. All else being equal:

When implied volatility is relatively high, the option price is more expensive (for assets with low price volatility, 30% may be considered high);

When implied volatility is relatively low, the option price is cheaper (for assets with high price volatility, 80% may still be considered low).

Put/Call Ratio: The ratio of put option volume to call option volume. A smaller ratio indicates stronger bullish sentiment.