10 Hot Stocks to Watch — Tuesday, August 18, 2026

SoundHound AI fell 8.65% to $5.70 today, landing among the top 10 most-shorted stocks as bearish pressure mounts. Yet options traders are painting a sharply different picture: call volume is surging with a 4.84 call-to-put ratio, anchored by nearly 10,500 contracts of $7.50 calls expiring August 2026. The positioning suggests contrarian bets on mean reversion toward $7.50–$9.00, a 32–58% upside from current levels, though the stock's 2.826 beta signals violent swings ahead.

Applied Materials jumped 5.55% to $535.31, outpacing semiconductor peers on renewed conviction that equipment makers offer better risk-reward than memory chips in the AI cycle. Options traders are positioning for further upside, with 1,652 call contracts at the $600 strike (2026) and 1,368 at $550 drawing heavy volume—signaling conviction above current levels. The $500 put floor indicates institutional support; watch the $550 technical level as a near-term consolidation zone.

ServiceNow fell 5.08% today, extending pressure on SaaS peers as the sector grapples with AI disruption concerns. Yet options traders are painting a contrarian picture: call-to-put ratio of 4.41 with heavy positioning in $120–$130 calls expiring August 2026 suggests institutional accumulation near support. The stock trades 39% below its 52-week high, aligning with analyst commentary that NOW offers fair value for patient buyers. Watch the $115 support level—a breach would invalidate the bullish setup.

Marathon Holdings dropped 4.23% Thursday despite a rising tech sector, pressured by Morgan Stanley's underweight rating and lowered $6 price target—nearly 47% below current levels. However, options traders are painting a starkly different picture: call volume exploded with 39,000+ contracts across 2026-dated strikes, pushing the call-to-put ratio to 4.14. Heavy positioning in the $9.50–$10.00 range suggests institutional bets on a substantial rebound, potentially aligned with the company's AI infrastructure pivot and $12.9B in crypto holdings. Watch the $10 level by August 2026.

Micron surged 4.13% to $1,011.75, marking a symbolic breakthrough after a 260%+ surge in 2024 driven by AI-driven memory demand. The options market is screaming conviction: call volume dominates with a 1.96 call-to-put ratio, led by heavy positioning in $1,100 and $1,200 strike calls expiring August 2026—suggesting traders are banking on sustained upside through geopolitical tailwinds (U.S. pressure on Apple's China DRAM sourcing). Watch the $1,100 level as the next technical target; elevated beta of 2.27 underscores volatility risk.

Devon Energy jumped 3.75% to $47.57 after the Solitude Pipeline joint venture secured final investment decision for two 48-inch natural gas pipelines from the Permian to Katy, Texas, backed by investment-grade shipper commitments. Argus maintains a Buy at $45.85 while Barclays keeps an Overweight, though it trimmed its target to $58 from $62. Options traders are heavily constructive, with a 2.74 call-to-put ratio and 1,356 calls flowing into the $46 strike ahead of August 21 expiration, signaling conviction above current levels.

Meta shed 3.54% today as a federal trial commenced over allegations of social media addiction and child privacy violations, with potential damages reaching $1.4 trillion. The selloff pushed the stock below key moving averages, yet options markets are flashing contrarian signals—call-to-put ratio of 1.88 with heavy accumulation in $595–$620 August 2026 calls suggests institutional conviction in a rebound. Watch the $550 support level and whether near-term puts offer a capitulation setup for longer-term buyers betting on litigation resolution.

Lam Research climbed 3.45% to $343.84, riding a sector-wide rotation into semiconductor equipment as the better AI trade relative to memory chips and hyperscalers. The options market tells a different story: heavy put buying dominates, with 13,088 contracts flooding the $240 strike (Aug 2026), signaling hedges against a pullback below $300. The C/P ratio of 0.15 confirms structural bearishness, though notable call volume at $400 suggests some institutional conviction on a push through recent highs.

GameStop climbed 2.93% to $22.15 as Ryan Cohen signals retreat from his $56 billion eBay takeover bid, potentially pivoting to a partnership instead. The strategic reversal eases leverage concerns and clears the path for operational focus—a relief that's resonating with traders. Options markets are singing along: a 5.97 call-to-put ratio and heavy volume in near-term $19–$21 calls expiring August 21 suggest conviction in the $22–$23 range.

Netflix dropped 2.74% Monday as third-quarter revenue and earnings guidance disappointed investors, despite billionaire Bill Ackman's new Pershing Square stake signaling conviction at compressed valuations. Options markets paint a more constructive picture: call volume dominance (2.08 C/P ratio) shows heavy positioning in $78–$80 strikes expiring August 21, suggesting traders are betting on a rebound above current levels. Watch the $80 technical resistance; a break there could validate the call buyers' thesis.