Full Breakdown
AI-Driven Tech Stocks Trigger Unusually Bullish Options Activity
By Drooid · · How we work
Core Event: Surge in Tech Options Amid AI Trade Rebound
On Thursday, after the Federal Reserve’s first interest-rate hike since 2023, the Nasdaq-100 posted its best day in six weeks and the Cboe volatility gauge fell to 15.4, the lowest level in a week. Market-makers priced calls about two dollars higher than at-the-money puts, indicating strong demand for upside exposure. Options traders concentrated on artificial-intelligence-linked names—Intel, Advanced Micro Devices (AMD), Crowdstrike and SpaceX—each trading well above their 30-day averages.
Data & Statistics: Call-Heavy Premiums and Trading Volumes
- Intel saw more than 1.3 million contracts traded, nearly three times its monthly average, with roughly 270,000 calls versus under 140,000 puts (ThinkOrSwim data). Of the $320 million premium initiated, $231 million was tied to call contracts (SpotGamma).
- AMD’s volume was almost double its average; traders bought about 107,000 calls and 71,500 puts, while selling an equal number of puts (Cboe LiveVol). A notable AMD trade involved 1,500 550-strike calls expiring Nov. 20, worth $8.3 million, paired with an offsetting sale of 1,500 750-strike calls expiring June 2027.
- Crowdstrike’s most popular contract was a 250-strike call expiring Friday, a $2 trade that needs a 2 % move to break even.
- SpaceX activity reached its highest level since July 7, with more than $1.5 billion in premium changing hands; $1.1 billion was linked to puts, and a single sale of 41,000 205-strike puts for over $200 million accounted for a large share of put selling.
Background & Context: Rate Hike, AI Momentum and Market Sentiment
The rate increase lifted the S&P 500 by over 1 % as ten of eleven sectors rallied. Despite AI leaders warning of “doomsday” outcomes without regulation, the AI trade rebound spurred bullish positioning across the technology sector, reinforcing the Nasdaq-100’s upward trajectory.
Market Impact: Bullish Skew and Sector Rally
The call-heavy skew signaled investors’ confidence in further gains for AI-related hardware and cybersecurity firms. Intel’s stock, trading at its highest level since July, is also in talks with SK Hynix to produce chips in the United States, adding a supply-chain narrative to the options enthusiasm.
What’s Next: Upcoming Expiries and Continued Activity
The most traded Intel contract is the 115-strike call expiring Oct. 2, requiring a 7.7 % rise to profit. AMD’s large 550-strike call expires Nov. 20, with profitability contingent on a rally above $615. These expiries, along with ongoing high-volume put selling, suggest that options market participants will continue to monitor AI-related stocks for further upside potential.