10 Hot Stocks to Watch — Friday, July 31, 2026

Micron Technology jumped 18.36% to $874.66 as memory chipmakers extended gains following Apple and Amazon signals of sustained pricing strength. Rising memory costs—with Apple spending significantly more in Q2—underscore structural demand tailwinds tied to AI infrastructure and long-term automotive contracts signed with Qualcomm and DENSO. Options markets show mixed conviction: heavy call volume at $900 and $850 strikes through end-July suggests some bulls positioning for further upside, though notable put activity at $800 hints at profit-taking concerns. Watch the $900 level by July 31 expiration.

Lam Research rocketed 18% after unveiling an $8.1 billion quarterly revenue forecast—well above expectations—driven by surging AI-driven chip equipment demand. The semiconductor equipment maker's beat on both earnings and guidance reflects accelerating capex cycles as major tech firms race to secure memory and processor capacity. Options markets are pricing in sustained momentum: call volume at 1.70 call-to-put ratio, with heavy positioning in $300–$330 strikes through mid-2026, suggesting traders expect the rally to extend. Watch the $330 level as resistance; a close above it would confirm institutional conviction.

Microsoft jumped 15.51% today, tracking a broad Big Tech recovery fueled by earnings evidence that AI investments are finally generating returns—particularly AWS's accelerating profitability. Options traders are aggressively buying calls, with a 2.76 call-to-put ratio and 41,000+ contracts flooding the $450 and $460 strikes ahead of Friday's expiry. Watch $470 by next week as the next technical target amid sector momentum.

Applied Materials rocketed 14.97% today as semiconductor equipment demand accelerates on AI infrastructure buildout, though analysts question whether valuations remain attractive after a 219% five-year run. Options traders are hedging aggressively: put volume dwarfs calls with 2,800+ contracts at the $440 strike through August 2026, signaling conviction that the stock could pull back from its 52-week high of $739.67. The $500 call ITM shows some long positioning, yet the 0.62 call-to-put ratio underscores skepticism about sustained upside. Watch the $450–$440 support zone in coming weeks.

Schlumberger rallied sharply today after beating Q2 earnings and revenue estimates, lifting the energy services giant 11% to $52.42 amid broad analyst optimism. Yet options traders are flashing a red light: put volume is crushing calls with a 0.51 call-to-put ratio, with heavy ITM puts concentrated at $51–$52 strikes expiring July 2026 (1,601 contracts). The skew suggests institutional hedging ahead of margin pressures and near-term net debt risks, even as offshore and digital growth narratives remain intact. Watch $51 support; a close below that level could trigger further defensive positioning.

SoundHound AI tumbled 8.65% to $5.70 today, extending losses from its 52-week high of $22.17, despite announcing expansion of its Emily AI agent at MUSC Health. Options traders are betting on recovery: call volume is heavily skewed (4.09 call-to-put ratio), with over 5,800 contracts trading the $6.0 strike (ITM) through July 2026. Wall Street's $7.93 price target suggests 39% upside in a $47.5B voice AI market; watch the $6.50 level—2026-08 expiry—where 4,300+ calls sit OTM.

Oracle jumped 8.34% Thursday after expanding its partnership with Google to integrate Gemini AI models into its enterprise software suite, while benefiting from Microsoft's blockbuster cloud earnings that lifted sentiment across the sector. Options traders are aggressively positioning for further upside, with a 4.95 call-to-put ratio and heavy volume in $130 and $150 calls expiring late July and August. The $130 strike—just 2% above current levels—shows particular conviction, with nearly 49k contracts trading through end-of-month expiry.

Meta shares dropped 7.95% today, extending losses from a year that's seen the stock fall sharply despite screening undervalued on DCF and earnings multiples. Zuckerberg's continued superintelligence bet—and the billions required to fund it—keeps investors spooked even as peers like Amazon and Apple deliver stronger signals. Options flow shows heavy put demand at $500 and $520 strikes expiring today, suggesting protection-buying ahead of potential further weakness; calls remain balanced but lack conviction.

Barclays' volatility proxy fell sharply today as geopolitical tensions spiked oil prices, triggering a broad risk-off session that pressured equities and implied volatility across asset classes. Despite the decline, options traders are positioning aggressively bullish, with call-to-put ratio hitting 3.63—signaling confidence in mean reversion higher. Heavy July 2026 call buying around $23–$24 strikes suggests conviction that VXX finds support near current levels, though collateral liquidity remains the wild card in today's choppy macro environment.

Moderna rallied 6.29% to $57.92 ahead of Friday's Q2 earnings announcement, riding momentum from European flu-COVID combo vaccine approval and ongoing cancer trial progress. Options flow signals investor hesitation, however: a 1.03 call-put ratio masks heavy put buying at the $45 strike (1,357 contracts), suggesting downside hedging ahead of results. Call clusters at $60–$63 indicate modest upside conviction. Watch the $60 level—a break above unlocks calls; a close below $55 could trigger defensive positioning.