Earnings Week Puts Options Market on Edge

Earnings season is driving sharp options sentiment shifts across tech and Chinese EV names this Sunday, August 23.

SNOW is the standout signal. Its put/call ratio hit a new peak, according to ORTEX data — an unusual spike for a stock that is up 51.7% year-to-date. Short interest sits at 5.5% of free float. Availability of shares to borrow is a staggering 1,670% of short interest. That means ample ammunition for both sides of the trade. Options traders are leaning bearish into the print.

NVDA faces its second earnings print in a week. Bears remain sidelined. The short score is a low 29.5. Short interest DTC is just 0.55. The market is pricing in more upside, with analysts seeing 42% return potential.

CRM is heading into its Q2 print down 21% for the year. Bears have been retreating fast in options markets. The RSI sits at 66. Analysts see 16.6% upside. A sentiment reversal is clearly underway.

VEEV bulls are in charge. Options flow this week turned bullish ahead of Wednesday's report. The stock has added 11% year-to-date. Short interest DTC is 3.7, and the short score is a benign 39.3.

The biggest wildcard is LI. The EV maker's borrow market is nearly maxed out, with availability at just 5.8% of short interest — one of the tightest readings across the market. That kind of squeeze in borrowing capacity, combined with Wednesday's print, makes it a high-risk name for short sellers. Watch this one closely.