Single stock options liquidity is still extremely elevated for mega-caps vs. rest of market

Daily volumes for options in the S&P 500 Index (SPX), the S&P 500 Trust (SPY), the Nasdaq 100 Index (NDX), and the Invesco QQQ Trust (QQQ) are significantly higher than any single stock.

But the notional value traded in the top single stocks – (NVDA), (TSLA), (AAPL), (META), (MSFT) – continues to be highly more elevated than most stocks.

Nvidia (NVDA), Tesla (TSLA), Apple (AAPL) and Meta Platforms (META) options are all more liquid than Russell 2000 Index (RTY) options, with $16.4M in three-month average notional volume. The former four have $49.7M, $41.4M, $20.4M, and $18.6M respectively.

Options positioning for the mega-cap tech stocks with the highest three-month average daily notional trading volume “represent a large percentage of risk traded on a daily basis,” said John Marshall, head of derivatives research at Goldman Sachs, in a note.

Other mega cap tech stocks with the most liquid options market:

• Microsoft Corp. (OTC:MSTF) – Three-month average notional volume: $11.8B
• Super Micro Computer Inc. (SMCI) – Three-month average notional volume: $11.6B
• Amazon.com Inc. (AMZN) – Three-month average notional volume: $9.5B
• Advanced Micro Devices (AMD) – Three-month average notional volume: $8.4B
• Netflix Inc. (NFLX) – Three-month average notional volume: $5.8B
• Broadcom Inc. (AVGO) – Three-month average notional volume: $4.4B
• MicroStrategy Inc. (MSTR) – Three-month average notional volume: $4.4B
• Eli Lilly & Co. (LLY) – Three-month average notional volume: $4B
• Costco Wholesale Corp. (COST) – Three-month average notional volume: $4B
• Alphabet Inc. (GOOGL) – Three-month average notional volume: $3.6B
• Coinbase Global Inc. (COIN) – Three-month average notional volume: $3.4B
• CrowdStrike Holdings Inc. (CRWD) – Three-month average notional volume: $3.1B
• Taiwan Semiconductor Manufacturing Co. (TSM) – Three-month average notional volume: $2.2B
• Micron Technology Inc. (MU) – Three-month average notional volume: $2.1B
• Alibaba Group Holding (BABA) – Three-month average notional volume: $2B
• PDD Holdings Inc. (PDD) – Three-month average notional volume: $2B

Top indexes by three-month average daily notional trading volume:

• S&P 500 Index (SPX) – Three-month average notional volume: $1.7T
• Nasdaq 100 Index (NDX) – Three-month average notional volume: $102.4B
• Russell 2000 Index (RTY) – Three-month average notional volume: $16.4B
• S&P 500 Mini [Not covered] – Three-month average notional volume: $3.7B
• VIX Index (VIX) – Three-month average notional volume: $1.9B