On Tuesday, SK Hynix options began trading, coinciding with a notable 20% increase in the stock price. Approximately 150,000 options were traded by midday, with a predominance of call selling rather than buying, as reported by Cboe LiveVol. The options offered five expirations, including monthly options through March 2027.
While the trading volume surpassed that of the VanEck Semiconductor fund and was nearly double that of Sandisk or Marvell, it was significantly lower than the Roundhill memory ETF and Micron, which saw about 380,000 contracts traded.
A key factor in the subdued call-buying activity is attributed to the surge in single-stock ETFs and leveraged funds linked to SK Hynix, which have drawn speculative interest away from the options market. Scott Bauer, CEO of Prosper Trading Academy, noted that the demand for these ETFs, which include double long and double short options, may have diverted attention from the options market.
The two largest trades during the session involved a trader selling over 2,200 of the 180-strike calls expiring on July 17, generating approximately $2 million in sales. Notably, the top trades by volume were all bearish, indicating a cautious sentiment among traders regarding SK Hynix's immediate prospects