Today's Options Market Update
Tech Stocks on Track for a Second Day of Gains
Tech stocks were poised for a second day of gains Friday, with semiconductor stocks set to open higher as momentum carries over from Taiwan Semiconductor Manufacturing's (TSM) earnings report. PNC Financial (PNC) continued a string of upbeat earnings news from banks before the bell. Overall, small cap stocks looked set to lead the way again, while the S&P 500 and Dow Jones Industrial Average were both flat before the open.
The day's calendar is relatively light on earnings and economic news. Industrial production for December is due out just before the market open, providing a reading on the health of the nation's factories. Federal Reserve officials Susan Collins and Michelle Bowman will speak this morning, while Vice Chair Philip Jefferson will speak this afternoon. Markets will be closed Monday for the Martin Luther King Jr. holiday.
On Thursday, stocks broke a two-day losing streak but closed well off their highs as earnings reports boosted technology stocks and big banks. Tech stocks rebounded after Taiwan Semiconductor Manufacturing disclosed big investment plans to meet demand for AI chips. Morgan Stanley (MS), Goldman Sachs (GS), and BlackRock (BLK) all rose more than 4% after reporting earnings. Still, small-cap stocks continued to outpace as investors broaden their search for returns. Oil tumbled and related energy stocks fell as U.S.-Iran tensions seemed to cool down. Silver hit another record high.
Source: Schwab Center for Financial Research
Morning Rush
- The 10-year U.S. Treasury yield (TNX) is higher by 4 basis point to 4.21%.
- The U.S. Dollar Index ($DXY) is slightly higher by 0.06 to 99.38.
- The CBOE Volatility Index® (VIX) is up 1.96% to 16.15.
- WTI Crude Oil (/CL) is higher by 0.86% to $59.59/barrel.
- Bitcoin (BTC) is lower by 0.84% to $94,555.
- Ethereum (ETH) is lower by 0.85% at $3,264.
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Today's Bullish Activity
Shares of ImmunityBio Inc. (IBRX + $1.21 to $5.16) are up over 28.00% today and 126% in a week , extending their advance for the 11th straight session, after the biotechnology company reported efficacy results from a clinical cancer trail. Per the report, which analyzed efficacy and safety results from the ongoing QUILT-106 clinical study to treat patients with Waldenström Non-Hodgkin's lymphoma, all patients who participated in the study remain in clinical disease control. This news follows a report earlier this week that the company received accelerated approval from the Saudi Food and Drug Authority for its Anktiva drug, per Bloomberg.
Option trading in IBRX currently stands at 144,117 contracts, 15x the average daily volume with calls outpacing puts 8:1. Leading the way are the following trades, expirations, and strikes:
- January 16th, 2026, 5.00 call accounted for 19,667 contracts; open interest is 8,344 contracts.
- January 16th, 2026, 4.00 call accounted for 16,087 contracts; open interest is 26,066 contracts.
- January 16th, 2026, 5.50 call accounted for 13,344 contracts; open interest is 5,222 contracts.
New 52-week highs (276 new highs today): Immunitybio Inc. (IBRX + $1.21 to $5.16), Denison Mines Corp. (DNN + $0.10 to $3.65), Micron Technology (MU + $18.04 to $354.67), Rocket Lab Corporation (RKLB + $6.04 to $96.778)
Notable Call Activity
Unusual call activity is noted today in LoanDepot Inc. (LDI + $0.30 to $2.97), as call volume currently stands at 11,925 contracts, 13x the average daily volume and 200x the put volume. Much of this morning's activity can be attributed to volume spikes in the January 23rd, 2026, expiration month, specifically at the 2.50 and 3.00 strike calls. While trades have been two-sided, most of the volume has been on the sell side, with a single block trade to sell 2,524 3.00 strike calls of particular interest. Traders sold the 3.00 strike calls at $0.15 when the bid/ask was $0.15 x $0.20. Open interest at the 3.00 strike was only 381 contracts, so we know this represents a new position (suggesting neutral to bearish intent). Shares of LDI are up over 20% in the past week, following news that President Donald Trump had instructed his representatives to buy $200 billion in mortgage bonds.
Another name exhibiting unusual activity today is SSR Mining Inc. (SSRM - $1.14 to $22.63), as call volume has risen to 11,555 contracts in morning trading, 30x the average volume and 40x the put volume. Traders are sellers in the March 20th, 2026, expiration month, primarily at the 25.00 strike, where a single block trade for 9,999 contracts occurred. Traders sold the 25.00 strike calls for a price of $1.88 when the bid/ask was $1.60 x $2.35, slightly below the mid-price. There were only 1,561 contracts of open interest, so we know this represents a new position (suggesting neutral to bearish intent). Traders appear to be trimming positions in the materials sector today.
Today's Bearish Activity
Shares of Constellation Energy (CEG - $31.69 to $309.51) are down over 9.00% today, on pace for their biggest drop since last April, after it was reported that the White House is expected to sign an agreement with governors from states inside the PJM grid Friday to combat rising electricity costs. Per MT Newswires, President Trump and governors from Mid-Atlantic states plan to direct grid operator PJM Interconnection to hold an auction for big tech companies to bid on 15-year contracts for new electricity generation capacity, citing sources in the White House. Shares of CEG have fallen four of the past five days and broke below their 200-day SMA for the first time since May of 2025.
Option trading in CEG currently stands at 20,334 contracts in morning trading, on pace for 5x the daily average, with puts outpacing calls 1.5:1. Leading the way are the following trades, expirations, and strikes:
- January 16th, 2026, 307.50 put accounted for 1,145 contracts; open interest is 10 contracts.
- January 16th, 2026, 320.00 put accounted for 947 contracts; open interest is 1,430 contracts.
- March 20th, 2026, 270.00 put accounted for 745 contracts; open interest is 445 contracts.
New 52-week lows (56 new lows today): HP Inc. (HPQ - $0.03 to $20.58), ServiceNow Inc. (NOW - $2.01 to $129.13), Trade Desk Inc. (TTD - $0.37 to $35.86), Adobe Systems Inc. (ADBE - $6.05 to $298.04)
Notable Put Activity
There is unusual put activity today in FirstEnergy Corp. (FE + $0.48 to $47.05). This activity equates to over 20,305 put contracts, 45x average daily put volume and 100x today's call volume. Nearly all the volume can be attributed to activity in the February 20th, 2026 expiration month where over 19,354 contracts have traded. Traders have targeted the 45.00 strike put with purchases through multiple large block trades. They've paid an average price of $0.65 when the bid/ask was $0.55 x $0.65. Open interest was only 6,800 contracts, so these are likely either new positions or additions to prior longs (suggesting bearish intent). Shares of FE have already rallied 8% this month, so traders may be looking to hedge some downside risk.
Unusual activity has also been detected in Carrier Global Corp. (CARR + $0.43 to $55.98), as put volume stands at 18,931 contracts, 100x average volume and 90x call volume, in morning trading. Much of the volume can be attributed to large sell block orders in the February 20th, 2026, expiration month. Traders sold the February 47.50 strike puts a total of 18,842 times for an average price of $0.42 when the bid/ask was $0.40 x $0.55. With only 199 contacts of open interest, we know this represents a new position (suggesting neutral to bullish intent). Shares of CARR are trying to break out above a long-term downtrend that has cut their value by 40% since last August.
Gauging Volatility
The Cboe Volatility Index (VIX + 0.31 to 16.15) is up by 1.96%, as equity markets are down in morning trading (DJI - 114, SPX - 11, COMPX - 59). VIX movement has occurred within a narrow range today (the intraday range is 15.36 to 16.29). The highest volume contract is currently the January 21st, 2026, 32.00 call (volume is 17,450 vs. open interest of 38,709).s so far today.
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