Opendoor Leaps Over Palantir to Join Nvidia, Tesla in Top Stock Options

$Opendoor Technologies Inc(OPEN)$   saw its options volume soar above that of $Palantir Technologies Inc.(PLTR)$  , as it joined $NVIDIA(NVDA)$   and $Tesla Motors(TSLA)$   in Friday's most active stock options after Federal Reserve Chairman Jerome Powell signaled a shift in the labor market that opens the door for an interest rate cut . 

Shares of Opendoor climbed 39% Friday as Powell's speech in Jackson Hole sent Treasury yields declining. That fueled optimism that mortgage rates will follow the downtrend trajectory, spurring hopes of a rebound for the housing market and improving the financial outlook of the company that's expected to report a third straight annual revenue decline this year.

Almost 2 million Opendoor call options changed hands. That's almost quadruple the 501,932 contracts on Thursday and the 20-day average of 496,335. Including put options, the total reached 2.54 million contracts, compared with Palantir's 1.66 million options. Nvidia and Tesla both had a volume of about 3.44 million contracts, leading the day's line-up. 

In early August, the company forecast revenue in the third quarter to reach $800 million to $875 million. That’s down from the $1.4 billion it reported for the same quarter a year earlier. Analysts, on average, expect the company to report 2025 revenue of $4.35 billion, down from $5.15 billion a year earlier, according to estimates compiled by Bloomberg. 

Revenue has been on a downtrend after peaking at $15.57 billion in 2022, when the global pandemic spurred demand for homes as people sought bigger space at a time when they were working from home. The Fed started hiking interest rates in March 2022, fueling the increase in mortgage rates that eventually priced many out of the housing market.

Call options that give their holder the right to buy Opendoor shares at $5 each by the end of the day attracted the heaviest trading activity, with 284,470 contracts changing hands, surpassing the open interest of 76,990. Volume jumped from 11,110 a day earlier as the rally took the share price climbed above that strike price, putting the contract well in the money before it expired. 

@TigerStars  @CaptainTiger  @TigerWire  @Daily_Discussion   @Tiger_chat  @Tiger_comments  @MillionaireTiger