Option Movers | Tesla Shows Bearish Sentiment; Freeport-Mcmoran Sees 98% Call Ratio
U.S. stocks finished lower on Wednesday (Jan 14), led by a drop in the Nasdaq, with technology shares declining as investors moved into more defensive areas, while bank stocks extended recent losses following some mixed quarterly results.
Regarding the options market, a total volume of 61,871,771 contracts was traded, of which 60% were call options.
Top 10 Option Volumes
Top 10: $NVDA(NVDA)$, $TSLA(TSLA)$, $FCX(FCX)$, $MSTR(MSTR)$, $AAPL(AAPL)$, $INTC(INTC)$, $META(META)$, $NFLX(NFLX)$, $MSFT(MSFT)$, $AMD(AMD)$
Source: Tiger Trade App
$Tesla(TSLA)$ stock fell 1.8% on Wednesday after a surprise announcement from CEO Elon Musk about the company's Full Self-Driving driver assistance product. The move came after Musk announced on his social-media platform, X, that Tesla would stop selling FSD for a one-time payment and go to a subscription-only option.
FSD currently costs $8,000 once or $99 a month. That makes the break-even point between subscription and purchase at 81 months, or almost seven years. If you own a Tesla longer than that and want FSD, a one-time purchase is the better option.
Tesla has hundreds of thousands of FSD subscribers. It didn't respond to a request for comment about the number of users or how they pay. It's likely the majority are monthly subscribers.
A total number of 1.56 million options related to $Tesla(TSLA)$ were traded on Wednesday, of which 60% were call options. Based on option delta volume, traders sold a net equivalent of -91,058 shares of Tesla stock. The largest bearish delta came from selling calls.
Source: Market Chameleon
Unusual Options Activity
$Freeport-Mcmoran(FCX)$ stock reached a 52-week high on Wednesday, shares closed at 1.7% higher to $60.35. This achievement underscores a notable 50% increase over the past year, reflecting the company’s robust performance and investor confidence.
The surge in stock price highlights Freeport McMoRan’s strong positioning in the market, driven by favorable commodity prices and strategic operational efficiencies. Trading at a P/E ratio of 41.4, the stock commands a premium valuation despite its $84.27B market cap. As the company continues to capitalize on global demand for copper and gold, its stock’s performance remains a focal point for investors looking for growth in the mining sector.
There are 1,370,003 option contracts related to $Freeport-Mcmoran(FCX)$ traded on Wednesday, of which call options accounted for 98%..
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