Significant Options Activity on Thursday: SIG, NVDA, APP
NVIDIA Options Trading: NVIDIA Corp (NVDA) experienced a significant options trading volume of 2.1 million contracts, equating to about 212.2 million underlying shares, which is 103.5% of its average daily trading volume. Notably, the $175 strike call option expiring on December 19, 2025, saw 113,771 contracts traded.
Applovin Options Trading: Applovin Corp (APP) recorded an options trading volume of 35,703 contracts, representing approximately 3.6 million underlying shares, or 92.7% of its average daily trading volume. The $700 strike call option expiring on December 19, 2025, had 1,476 contracts traded.
Comparison of Trading Volumes: The trading volumes for both NVDA and APP indicate heightened investor interest, with NVDA's options trading significantly surpassing its average daily volume compared to APP's substantial but lower volume.
Resource for Options Expirations: For more information on various available expirations for SIG, NVDA, or APP options, StockOptionsChannel.com is recommended as a resource.
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- Market Overreaction: Nvidia CEO Jensen Huang argues that the sell-off in software stocks due to the introduction of AI tools is irrational, as these tools are designed to work alongside existing software rather than replace it, indicating a lack of rationality in the market's pessimism towards the software industry.
- Microsoft's Strong Performance: Microsoft has seen a 160% increase in paid users for its generative AI copilots in products like Microsoft 365, and despite a 27% drop from its high, its adjusted earnings grew by 24% in the last quarter, showcasing the company's robust performance in the AI sector.
- AppLovin's Rapid Growth: AppLovin's Axon machine learning engine provides a competitive edge in its ad tech software, and although its stock is down 52%, its earnings surged by 96% in the last quarter, indicating strong potential in the advertising technology space.
- HubSpot's Innovative Leadership: HubSpot has become the first CRM vendor to integrate its platform with three leading generative AI tools, and despite a 73% decline in stock price, its adjusted earnings increased by 22%, demonstrating its ongoing innovation capabilities in customer relationship management.
- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
- Significant Stock Drop: Applovin's shares plummeted 14.9% this week, with a market cap now at $127 billion, reflecting investor anxiety over emerging AI technologies and their potential impact on future growth.
- Increased Competitive Threats: The launch of Google's Project Genie and the emergence of CloudX as a digital advertising platform are seen as direct threats to Applovin, particularly as CloudX uses generative AI to streamline ad auctions, potentially undermining Applovin's dominance in mobile game advertising.
- Analyst Insights: Despite the competitive pressures, analysts at Wedbush believe the threat from CloudX is overstated, citing past failures of similar Google initiatives due to latency issues, and suggesting that CloudX's success could enhance the credibility of mobile gaming ads, attracting more mainstream advertisers.
- AI Application Prospects: Applovin may begin incorporating more agentic AI in its ad auctions, and with its rapidly growing revenue and profits, this indicates management's responsiveness to market changes, potentially allowing the company to maintain its competitive edge.
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
- Tech Stock Decline: The tech sector has slid over 12% since late October, erasing gains for the S&P 500 in 2026, raising investor concerns about the future of the tech industry and its potential impact on overall market performance.
- Market Rotation Trend: Despite the poor performance of tech stocks, traditional sectors like energy, consumer staples, and industrials have excelled this year, indicating a market shift towards these previously undervalued areas, potentially providing new opportunities for investors.
- Software Industry Pressure: The S&P 500 software and services index has plummeted 17% in just over a week, as fears of AI disruption combined with disappointing earnings from companies like Microsoft lead to doubts about the software sector's future, affecting investment decisions.
- Employment and Inflation Data: The upcoming January nonfarm payroll report is expected to show an increase of 70,000 jobs, despite a surge in layoffs, keeping the market focused on the Fed's future interest rate policies, with no further cuts anticipated before the June meeting.











