Today's Options Market Update
Stocks Slide Early as Oil, Yields March Higher
Rising oil prices and Treasury yields pushed stocks lower again early Thursday.
Signs of escalation in the Middle East sent oil about 5% higher, while yields also got a boost from Federal Reserve Governor Christopher Wallace's statement that multiple rate increases might be needed to tame inflation within "an acceptable period of time."
Stocks fell Wednesday, with seven of 11 S&P 500 Index sectors losing ground a day after the index closed at a record high. Treasuries set the tone for the day as yields on the 10-year and 30-year notes hit the highest level since 2002, but yields retreated after an auction of 10-year notes found strong demand.
Source: Schwab Center for Financial Research
Morning Rush
- The 10-year U.S. Treasury yield (TNX) is up 1 bps at 5.26%.
- The U.S. Dollar Index ($DXY) is slightly higher to 102.28.
- The CBOE Volatility Index® (VIX) is up 2.25% to 15.42.
- WTI Crude Oil (/CL) Futures are higher by $2.66 to $90.94/barrel
- Bitcoin (BTC) is lower by 2.63% to $81,420.
- Ethereum (ETH) is down by 5.46% to $2,434.
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Today's Bullish Activity
Shares of Chipotle Mexican Grill Inc. (CMG + $1.86 to $32.63) rallied 6% in early trading after the Financial Times reported that Starbucks Corp. has worked with advisers in recent months on a potential takeover proposal for the burrito chain. A deal could value Chipotle at nearly $39 billion, making it the largest-ever transaction in the restaurant sector. However, the status of the plans remains unclear, and a deal of this size may never materialize, according to the FT, which cited people familiar with the matter. Starbucks CEO Brian Niccol, who has led the company since 2024, previously served as Chipotle's chief executive.
Early trading volume in Chipotle reached 28.0 million shares, nearly nine times the 20-day average, with Bloomberg's model projecting 49.3 million shares by the end of the day. Bullish options flow was also detected, with 97,317 calls trading at 16x average volume. The put/call ratio stood at 0.08, while implied volatility rose nearly 3 points to 52.89%.
Option trading in CMG currently stands at 105,860 contracts, 8x average volume, with calls outpacing puts 12:1. The most active contracts are:
October 9th, 2026, 33.00 call accounted for 35,319 contracts; open interest is 47,498 contracts.
October 9th, 2026, 34.00 call accounted for 7,407 contracts; open interest is 7,263 contracts.
October 16th, 2026, 35.00 call accounted for 6,276 contracts; open interest is 11,810 contracts.
New 52-week highs (51 new highs today): Pacira Pharm Inc. (PCRX + $11.07 to $36.27), Petroleo Brasileiro (PBR + $0.39 to $24.38), XP Inc. (XP + $0.88 to $30.41), Shell Plc. (SHEL + $2.67 to $99.50)
Notable Call Activity
Call activity is elevated in Avantor Inc. (AVTR - $0.23 to $15.12), with 4,026 calls traded—70x average volume. Nearly all the activity came from two large block trades in the January 15th, 2027, expiration, as traders sold a total of 4,000 of the 16.00-strike calls at an average price of $0.98, compared with a bid/ask spread of $0.95 x $1.10. With open interest of just 92 contracts, the trades appear to represent new positioning. The call selling suggests a neutral-to-bearish outlook after AVTR reached a 52-week high of $16.38 just two days ago, as traders may be fading the recent move over the near term.
Call activity is elevated in SK Hynix Inc. (SKHY - $5.14 to $173.11), with 76,117 calls traded—4x average volume and 3x put volume. Much of the activity is concentrated in the November 20th, 2026, expiration, driven in part by a large call vertical sold 20,000 times, representing 40,000 total contracts. Traders sold the 195.00/200.00 call vertical for $4.31, just above the bid at the time. With combined open interest of only 1,763 contracts at the two strikes, the trade appears to represent new positioning and suggests a neutral-to-bearish outlook. SKHY began trading in U.S. markets in July and reached a high of $199.87 on September 9th. This activity may indicate that traders view that level as a near-term high.
Today's Bearish Activity
Shares of AngioDynamics Inc. (ANGO - $2.90 to $11.29) are down more than 20% today—their largest intraday decline since January 2024—even after the medical device company reported better-than-expected first-quarter results and reiterated its full-year net sales and gross margin outlook. AngioDynamics posted an adjusted loss of $0.04 per share, compared with estimates for a loss of $0.11 per share. Net sales totaled $80.9 million versus expectations of $80.7 million, while gross margin came in at 59.4%, above estimates of 53.1%, according to Bloomberg. Full-year guidance also topped expectations, with an adjusted loss of $0.24 to $0.29 per share, net sales of $336.0 million to $341.0 million, and gross margin of 54% to 55%. Investors may instead be reacting to the announcement that CEO Jim Clemmer will retire effective November 2.
Option trading in ANGO currently stands at 491 contracts, 6x the average daily volume with calls outpacing puts 15:1. Leading the way are the following trades, expirations, and strikes:
- October 16th, 2026, 12.50 call accounted for 232 contracts; open interest is 130 contracts.
- November 20th, 2026, 15.00 call accounted for 100 contracts; open interest is 5 contracts.
- November 20th, 2026, 2.50 call accounted for 30 contracts; open interest is zero contracts.
New 52-week lows (199 new lows today): Darkiris Inc. (DKI - $0.86 to $0.86), Agnc Investment Corp. (AGNC - $0.02 to $8.44), Nio Inc. (NIO - $0.16 to $3.38), Infosys Ltd. (INFY - $0.26 to $10.29), Rezolve AI Plc. (RZLV - $0.17 to $1.92)
Notable Put Activity
Put activity is elevated in Brookfield Corp. (BN - $0.68 to $36.30), with 6,337 puts traded—11x average volume and 100x call volume. Most of the activity is concentrated in the November 20th, 2026, expiration, where multiple block purchases of the 36.00-strike puts totaled 6,034 contracts at an average price of $1.37 per contract, just below the offer at the time. With open interest of only 204 contracts, the trades appear to represent new bearish positioning. Given that BN shares have fallen nearly 20% over the past two months, the activity suggests traders may expect further downside.
Put activity is elevated in Southwest Airlines Co. (LUV - $0.66 to $41.06), with 6,928 puts traded—9x average volume and 5x call volume. More than three-quarters of the activity is concentrated in the November 20th, 2026, expiration, led by the 40.00-strike puts. Although trading has been two-sided, most of the volume occurred on the sell side at prices ranging from $1.75 to $1.80. With open interest of only 445 contracts at the strike, the trades appear to represent new positions, suggesting neutral-to-bullish intent. Shares of LUV have traded in a range over the past two months but remain below both their 50-day and 200-day moving averages.
Gauging Volatility
The Cboe Volatility Index (VIX + 0.34 to 15.42) is up 2.25% today, as equity markets are lower in early trading (DJI - 145, SPX - 27, COMPX - 177). VIX movement has occurred within a narrow range today (the intraday range is 15.15 to 16.02). The highest volume contract is currently the November 18th, 2026, 21.00 call (volume is 10,044 vs. open interest of 94,288).
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