Heading into the open, futures on the Dow Jones Industrial Average are up 0.48% and S&P 500 futures are higher by 0.44%. Nasdaq-100 futures have added 0.48%.
In the options pits, put volume came in above calls for the second day in a row, even as overall volume fell back to average levels. Specifically, about 15.9 million calls and 16.3 million puts changed hands on the session.
However, those puts didn’t transfer over to the CBOE, where the single-session equity put/call volume ratio dropped to 0.62. Meanwhile, the 10-day moving average inched higher to 0.59.
Here are three stocks landing atop the most-active options list. Nike (NYSE:NKE) continues to see heightened volatility after last week’s poorly received earnings report. Apple (NASDAQ:AAPL) hosted a special event and unveiled four new services. Finally, Roku (NASDAQ:ROKU) rallied after investors learned the new Apple TV services would be available on its devices.
Let’s take a closer look:
Nike (NKE)
Volatility continued in Nike for a second session following last week’s earnings release. Despite reporting better-than-expected earnings, investors used the company’s weak forward guidance on currency pressures as a reason to head for the hills.
Buyers did fight back, however, and NKE stock was able to close slightly higher on Monday after being down as much as 1.6% in early morning trading.
Friday’s plunge upended Nike’s short-term uptrend by taking it below the 50-day moving average. The next major support zone lies at $78, so consider that the next downside target if sellers press their newfound advantage.
On the options trading front, puts dominated the session. Activity grew to 291% of the average daily volume, with 93,420 total contracts traded. Puts accounted for 54% of the total.
With the post-earnings volatility crush, implied volatility has fallen to 24%, which places it at the 33rd percentile of its one-year range. Premiums are pricing in daily moves of $1.24, or 1.5%.
Apple (AAPL)
Apple stepped into the spotlight yesterday, revealing four new services to customers: Apple News+, Apple Card, Apple Arcade and Apple TV+. The reception on Wall Street was mixed, with some complaining about the lack of pricing details provided.
The unveiling did little to stop the pullback that began on Friday for AAPL stock. By day’s end, its shares had fallen another 1.2%. Despite the two-day slide, the technical posture remains healthy. AAPL sits atop a rising 20-day, and 50-day moving average and the pattern of higher swing highs and lows that began after January’s earnings release has yet to reverse.
For now, this dip should be viewed as a buying opportunity.
On the options trading front, calls outpaced puts on the session. Activity climbed to 171% of the average daily volume, with 836,556 total contracts traded. Calls added 57% to the day’s sum.
Implied volatility stayed pat at 27%, or the 36th percentile of its one-year range. Premiums are baking in daily moves of $3.18, or 1.7%.
Roku (ROKU)
If March 13’s dose of downgrades took the wind out of Roku’s sails, then Monday’s event by Apple officially put it back in. Roku’s CEO attended the event, which revealed that Apple TV+ would be available on Roku devices.
By day’s end, the high volume rally lifted ROKU stock by 4.7%. Its current perch sits in the middle of support at $60 and resistance at $74, which makes it tricky to forecast the next move. I suspect its overall uptrend will continue to drive the bus, so bulls probably have the upper hand.
On the options trading front, calls were the hot commodity. Activity experienced a slight uptick to 114% of the average daily volume, with 90,144 total contracts traded. 61% of the trading came from call options alone.
The increased demand drove implied volatility up to 69%, placing it at the 44th percentile of its one-year range. Premiums are pricing in daily moves of $2.91, or 4.3%.
As of this writing, Tyler Craig held bullish positions in ROKU. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility.
