Today's Options Market Update

With the busiest day of the quarter on tap, tech stocks clawed back from Tuesday's losses but the broader market wavered in early action awaiting earnings from four of the Magnificent Seven and a Federal Reserve rate decision. Trading could be muted ahead of all the news, starting with the 2 p.m. ET Fed announcement.

No rate change is expected, so intrigue at the central bank will likely turn to whether Chairman Jerome Powell will stay on the Fed board. With Powell's term as chairman expiring next month, his economic outlook—possibly hawkish—may carry less weight than usual. There's also plenty of intrigue about what mega-cap companies will say in their outlooks after the close, especially in the wake of yesterday's chip market swoon.

The dive in chips yesterday keyed off a Wall Street Journal report about OpenAI missing internal demand targets that appeared to be "a perfectly timed piece to spoil the party in chips," said Nathan Peterson, director of derivatives research and strategy at the Schwab Center for Financial Research (SCFR). Tuesday's malaise in tech pulled down the entire market, though major indexes remain near all-time highs despite crude oil climbing above $103 per barrel today as the Middle East conflict dragged. Media reports said President Trump isn't happy with Iran's latest peace offer and is considering an extended blockade.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is higher by 4 bps to 4.40%.

The U.S. Dollar Index ($DXY) is up by 0.22% to 98.83.

The CBOE Volatility Index^® (VIX) is higher by 3.59% to 18.47.

WTI Crude Oil (/CL) is lower by 2.24% to $93.70/barrel.

Bitcoin (BTC) is down by 0.80% to $76,040.

Ethereum (ETH) is down by 1.70% to $2,273.

Shares of NXP Semiconductors Inc. (NXPI + $58.40 to $288.79) are up more than 25%, on track for a 52-week high and the biggest jump in over 15 years, after the chipmaker topped earnings expectations and issued an upbeat Q2 revenue forecast, beating the average analyst estimate of $3.27 billion with a forecast of $3.35 billion to $3.55 billion. For Q1, the company reported adjusted EPS of $3.05 versus estimates for $2.99. In addition, the company saw its adjusted gross margin expand to 58.5% while revenue rose 12% to $3.18 billion, compared with an average analyst estimate of $3.15 billion.

NXP Management said the auto industry's move to software-defined vehicles and a move to EVs is boosting demand, and the company is also poised to benefit from a growing data center business, with income from this segment expected to rise to more than $500 million in 2026, per Bloomberg.

Many analysts just raised their price targets on NXPI following the report, including Barclays (to $295 from $255), Citigroup (to $270 from $255), and Evercore ISI (to $320 from $260).

Option trading in NXPI currently stands at 18,947 contracts, 9x average with calls outpacing puts 1.5:1. Leading the way are the following trades, expirations, and strikes:

• May 15th, 2026, 290.00 call accounted for 2,717 contracts; open interest is 166 contracts.
• May 15th, 2026, 250.00 call accounted for 1,586 contracts; open interest is 3,579 contracts.
• May 15th, 2026, 230.00 put accounted for 1,478 contracts; open interest is 1,659 contracts.

New 52-week highs (179 new highs today): Intel Corp. (INTC + $8.13 to $92.65), Amazon.com Inc. (AMZN + $0.93 to $260.65), Nokia Corp. (NOK + $0.91 to $12.21), Starbucks Corp. (SBUX + $8.21 to $105.49), Bloom Energy Corp. (BE + $48.76 to $275.13)

Call activity is elevated in Silicon Motion Technologies (SIMO + $44.82 to $194.00), as a total of 8,629 calls transacted in morning trading (12x average and 9x puts). Most of the trades were concentrated in the May 15th, 2026 expiration as traders rolled 160.00 calls up to 200.00 strike. Early flow suggests some were short the 160.00 calls, now $34 in-the-money after the post-earnings 30% jump, with most of the 160.00 strike trades likely closing (per open interest) while 200.00 strike sells look like new positions (neutral-to-bearish). SIMO hit a 52-week high of $209.80. This pushed the RSI up to 85.

Another name showing unusual call activity is PBF Energy Inc. (PBF + $1.24 to $42.61), with 40,800 calls traded (38x average and 40x puts). A series of blocks in the May 15th and Dec. 17th, 2026 expirations drove the flow, as traders rolled 15,000 long May 43 calls up to 45 for a $0.70 credit (reducing delta exposure), and sold 9,100 Dec. 60 calls for $9.05, below the midpoint. Together, the trades suggest bullish exposure with gains potentially capped near $60. Shares of PBF are up more than 50% year-to-date.

Shares of Teradyne Inc. (TER - $46.85 to $333.28) are down more than 12% despite Q1 results that beat expectations, helped by AI-driven demand for semiconductor test equipment. Net income rose to $398.9 million and adjusted EPS to $2.56 (vs. $0.61 a year ago; Street $2.11), while revenue jumped 87% to $1.28 billion (Street $1.20 billion). Per Bloomberg, $1.11 billion of revenue came from the semiconductor test business, with the balance from robotics and product testing.

It's likely weaker guidance is weighing on the stock. Teradyne forecast Q2 revenue of $1.15 billion – $1.25 billion (Street $1.18 billion) and adjusted EPS of $1.86–$2.15 (Street $1.98). In addition, shares had rallied more than 90% year-to-date into the print, leaving a high bar.

Option trading in TER currently stands at 12,337 contracts, 10x the average daily volume with calls outpacing puts 2:1. Leading the way are the following trades, expirations, and strikes:

• May 1st, 2026, 430.00 call accounted for 574 contracts; open interest is 1,102 contracts.
• May 1st, 2026, 417.50 call accounted for 547 contracts; open interest is 502 contracts.
• May 1st, 2026, 420.00 call accounted for 531 contracts; open interest is 751 contracts.

New 52-week lows (93 new lows today): GE Healthcare Technologies Inc. (GEHC - $8.01 to $60.49), Boston Scientific Corp. (BSX - $1.66 to $56.78), Costar Group Inc. (CGSP - $1.24 to $34.72), Lucid Group Inc. (LCID - $0.21 to $5.67)

There is unusual put activity today in Nektar Therapeutics (NKTR - $0.92 to $82.89). This activity equates to over 4,258 put contracts (15x average and 4x calls). Half of the put activity stems from put sales at the 80.00 strike in the July 17th, 2026, expiration.  Multiple block trades have led to over 2,000 of the 80.00 strike puts getting sold at an average price of $7.00 when the bid/ask was $7.00 x $8.20.  With a total of only 14 contracts of open interest, these represent new positions (suggesting neutral to bullish intent).  Shares of NKTR have dropped 23% since posting a 52-week high of $109.00 on April 20th.

Unusual activity has also been detected in Floor & Décor Holdings (FND - $2.25 to $47.14), as put volume stands at 54,446 contracts (350x avg. volume and 150x calls). Nearly all the activity is from a massive put diagonal that traded between the June 18th and October 16th expiration months. A total of 26,685 diagonal spreads were traded for $0.30, as traders rolled down their long positions at the 47.50 strike in June to the 42.50 strike in October. They are likely extending the duration of their bearish positions while reducing some delta exposure. Shares of FND are trading very close to their 52-week low price of $46.47.

The Cboe Volatility Index (VIX + 0.64 to 18.47) is higher by 3.59% today, as equity markets are lower across the board in morning trading (DJI - 311, SPX - 11, COMPX - 35). VIX movement has occurred within a narrow range today (the intraday range is 17.81 to 18.67). The highest volume contract is currently the July 22nd, 2026, 34.00 call (volume is 26,002 vs. open interest of 1,305).