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Monday’s Vital Data: Nvidia Corporation (NVDA), Microsoft Corporation (MSFT) and JPMorgan Chase & Co. (JPM)

Options activity provides a look at expectations on NVDA, MSFT and JPM

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U.S. stock futures are itching to rally as Wall Street prepares for an influx of corporate earnings this week. Stocks are headed toward a positive open this morning, with earnings from Netflix, Inc. (NASDAQ:NFLX) and Bank of America Corp (NYSE:BAC) among those companies reporting today.

Monday’s Vital Data: Nvidia Corporation (NVDA), Microsoft Corporation (MSFT) and JPMorgan Chase & Co. (JPM)Finally, for economic data junkies, the New York Federal Reserve’s Empire State Manufacturing Survey for July will be released ahead of the open.

Against this backdrop, futures on the Dow Jones Industrial Average have added 0.06%, S&P 500 futures are up 0.06% and Nasdaq-100 have risen 0.15%.

On the options front, July expiration brought with it a veritable flood of call volume. Overall, about 17.2 million calls and 13.3 million puts changed hands on Friday. Turning to the CBOE, the single-session equity put/call volume ratio plummeted to a one-month low of 0.53, driving the 10-day moving average to a one-week low of 0.62.

Taking a closer look at Friday’s options activity, Nvidia Corporation (NASDAQ:NVDA) headed back toward all-time highs as ethereum prices rallied more than 9%. Meanwhile, Microsoft Corporation (NASDAQ:MSFT) saw heavy call volume as traders prepare for Thursday’s fiscal fourth-quarter earnings report. Finally, JPMorgan Chase & Co. (NYSE:JPM) options traders were also call heavy despite the stock sinking in the wake of better-than-expected earnings.

Monday’s Vital Options Data: Nvidia Corporation (NVDA), Microsoft Corporation (MSFT) and JPMorgan Chase & Co. (JPM)

Nvidia Corporation (NVDA)

Bolstered by a rebound in ethereum prices, NVDA stock rallied 2.7% on Friday and challenged resistance in the $165 region. After plunging to a two-month low, ethereum prices showed signs of life on Friday, rallying more than 9%. The cryptocurrency scene has been a major boost for Nvidia, and a rebound in the currency was a welcome driver for NVDA.

Additionally, NVDA continued to see follow through buying in the wake of its AI tie-up with Chinese technology giant Baidu Inc (ADR) (NASDAQ:BIDU).

NVDA options activity was brisk on Friday, with more than 557,000 contracts changing hands — hitting a near-term high. Calls were the vehicle of choice, snapping up 62% of the day’s take. With July options now expired, August becomes the front month for Nvidia, sporting a put/call open interest ratio of 0.75. While a touch lower than the last July reading taken, the current August ratio still shows a bit of timidity toward NVDA as the shares draw nearer to all-time high territory once again.

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