Today's Options Market Update
Stocks Climb Higher Despite Trade Uncertainty
Stocks are seeing some lift in June despite the ongoing U.S./China trade debacle and an international organization cut its global growth forecast, citing tariffs and trade policies. The Organization for Economic Cooperation and Development (OECD) now sees 2025 growth at 2.9%, down from 3.1%, and pegs U.S. growth at 1.6%, a sharp decline from the previous 2.2%. Economic concerns accelerated overnight following a surprisingly sharp drop in China's May manufacturing activity amid export weakness.
Back home, the April Job Openings and Labor Turnover Survey (JOLTS) arrives at 10 a.m. ET today after sliding to 7.19 million in March. Analysts expect something in the same neighborhood. That's well above average pre-pandemic levels but down from the post-COVID highs. The "quit" rate is another metric to watch, giving a sense of how easy it is for people to find new jobs. This is the first of several job reports coming down the pike, with ADP private employment data for May out early tomorrow and May nonfarm payrolls on Friday. Analysts see May jobs growth of 130,000, down from 177,000 in April, but a miss might jump-start hopes for Federal Reserve rate cuts.
It's a quieter week for earnings, but this afternoon brings results from CrowdStrike (CRWD) after the cybersecurity firm disappointed investors the last time it reported in March with guidance below Wall Street's expectations. The company announced yesterday it's collaborating with Microsoft (MSFT) to coordinate on identifying and tracking cyber threats. Watch automobile stocks, as today brings May motor vehicle sales figures. Ford (F) and General Motors (GM) both fell sharply yesterday after President Trump announced he'd raise steel and aluminum tariffs. Several smaller retailers reported this morning and appeared to impress, while a nuclear energy deal involving Meta Platforms (META) also caught investors' eyes.
Source: Schwab Center for Financial Research
Morning Rush
The 10-year U.S. Treasury yield (TNX) is lower by ~1 basis points to 4.45%.
The U.S. Dollar Index ($DXY) is higher by 0.50 to 99.21.
WTI Crude Oil (/CL) is higher by 2.10% to $63.83/barrel.
Gold prices have traded in a range of $3,357.20-$3,417.80, last seen trading lower by 0.80% to $3,370.10/oz.
Natural Gas prices have traded in a range of $3.63-3.76 and were last seen trading lower by 1.08% to $3.654.
Bitcoin (BTC) is higher by ~0.68% today to $106,644.90.
Today's Bullish Activity
Shares of Ferguson Enterprises Inc. (FERG + $25.11 to $205.40) are gapping up to a five-month high this morning after the distributor of plumbing and heating products reported fiscal Q3 earnings of $2.50 per share ($0.49 beat) on revenue that rose 4.3% year-over-year (YoY) to $7.62B (above the $7.42B FactSet consensus estimate). Regarding guidance, the company raised its fiscal-year 2025 (FY25) revenue forecast from "low single-digit growth" to "low to mid-single digit growth". Calls are outnumbering puts ~2:1 with the June 20th 210.00 call being the highest volume contract (volume is 140).
Also trading to the upside this morning is Signet Jewelers Ltd. (SIG + $8.45 to $75.26) after the diamond retailer reported fiscal Q1 earnings of $1.18 per share, excluding non-recurring items ($0.18 beat) on revenue that rose 2.0% year-over-year (YoY) to $1.54B (above the $1.52B FactSet consensus estimate) on Q1 same-store sales that increased 2.5% year-over-year. Looking ahead, the company said that Q2 revenue is expected to come in a range of $1.47-1.51B which is roughly in-line with the $1.49B FactSet consensus estimate. Calls and puts are trading roughly even with the June 6th 76.00 call seeing the most action from traders (volume is 679).
New 52-week highs (115 new highs today): Broadcom Ltd. (AVGO + $6.44 to $255.15), CrowdStrike Holdings Inc. (CRWD + $3.14 to $482.31), GE Vernova Inc. (GEV + $6.30 to $491.46)
Notable Call Activity
Some unusual call activity (~33:1 calls over puts) is being seen in mining company Perpetua Resources Corp. (PPTA + $1.97 to $16.95) as option traders primarily target the September 19th 20.00 call. Volume on this contract is 11,963 versus open interest of 3,044, so we know that the volume primarily represents fresh positioning. The bulk of the activity consisted of various-sized blocks that were bought at various times for between $1.95-$2.20 each, which suggests bullish intent.
Today's Bearish Activity
Shares of Ollie's Bargain Outlet Corp. (OLLI - $2.42 to $109.50) are trading lower this morning after the discount retailer beat quarterly estimates but issued lackluster guidance earlier this morning. The company reported Q1 earnings of $0.75 per share ($0.04 beat) on revenue that rose 13.4% year-over-year (YoY) to $576.8M (above the $566.71M FactSet consensus estimate). Regarding guidance, OLLI reaffirmed FY26 EPS guidance of $3.65-3.75 and FY26 revenue of $2.579-2.599B versus the respective $3.73 & $2.58B FactSet consensus estimates. Calls and puts are trading roughly even with the June 20th 105.00 put being the highest volume contract (volume is 489).
Also trading to the downside this morning is Rio Tinto PLC (RIO - $1.11 to $58.47) after Jefferies downgraded the mining company to "Hold" from "Buy" and cut their price target on the stock to 4,600 pence from 5,700 pence, citing a more balanced risk/reward profile amid recent developments and risks. Shares of RIO are trading at a six-month low this morning. Calls are outnumbering puts ~3:2 with the June 20th 57.50 call leading the way (volume is 173).
New 52-week lows (55 new lows today): Bio-Rad Laboratories Inc. (BIO + $2.69 to $219.25), Clorox Co. (CLX + $0.03 to $130.32), Teleflex Inc. (TFX + $1.43 to $121.09)
Notable Put Activity
Some unusual put activity (~11:1 puts over calls) is being seen in RingCentral Inc. (RNG + $0.71 to $26.70) which is primarily being driven by a couple of large blocks that were bought around the same time out on the January 2026 15.00 put – an 1,800 contract block was bought for $0.45 and a ,1200 contract block was bought for $0.40 when the bid/ask spread was $0.30 x $0.45 (open interest is 44). We know that both these blocks are new positions based on the open interest figure, and we can assume the intent is bullish in nature on both blocks given where the trades took place within the bid/ask spread.
Volume Signals
TKO Group Holding Inc. (TKO + $3.89 to $163.44): Option volume is running at ~25x the daily average on this sports and entertainment company which is primarily being driven by a 3,000 contract block that was bought on the July 18th 170.00 call for $3.59 when the bid/ask spread was $3.30 x $3.60 (open interest is 894). We know that this block is a new position based on the open interest figure, and we can assume the intent is bullish in nature since the trade took place above the midpoint of the bid/ask spread.
NexGen Energy Ltd. (NXE + $0.38 to $6.40): Option volume is running at ~8x the daily average on this uranium producer as option traders primarily target the July 18th 7.00 call. Volume on this contract is 10,436 versus open interest of 2,075, so we know that the volume primarily represents fresh positioning. The bulk of the activity consisted of various-sized blocks that were bought at various times at the ask price of $0.35 each, which suggests bullish intent.
Huntsman Corp. (HUN + $0.48 to $11.52): Option volume is running at ~6x the daily average on this chemical company which is primarily being driven by a 2,000 contract block that was bought on the August 15th 11.00 call for $1.02 when the bid/ask spread was $0.90 x $1.05 (open interest is 240). We know that this block is a new position based on the open interest figure, and we can assume the intent is bullish in nature since the trade took place above the midpoint of the bid/ask spread.
Gauging Volatility
The Cboe Volatility Index (VIX - 0.45 to 17.91) has been on both sides of the unchanged line today (intraday range is 17.86-19.21), as equity markets are higher across the board around the midday mark (DJI + 184, SPX + 40, COMP + 208). VIX option volume is below average today as the index is currently missing from the "Top Volume by Underlying" list. The volume put/call ratio is currently 0.53 with the highest volume contract being the July 16th 27.00 call (volume is 17,067 vs. open interest of 16,188).
Interested in trading options?
Explore more topics
Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options." before considering any option transaction. Call Schwab at 1-800-435-4000 for a current copy. Supporting documentation for any claims or statistical information is available upon request.
Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options prior to trading futures products.
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Investing involves risk including loss of principal.
All references to subjects (securities, indexes, futures contracts, and options contracts) were derived based on screens conducted by the writer for certain anomalous activity such as volumes, volatility and other related market data. As needed for brevity, the writer may have applied discretion when choosing among screen outputs for inclusion. Such discretion may have been based on news reports or other considerations of public interest. The views or opinions are those of the writer, and are subject to change without notice. All referenced subjects were chosen for illustrative purposes only and should not be considered recommendations, offers to sell, or solicitations of offers to purchase.
All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
Past performance is no guarantee of future results.
This information provided here is for general informational purposes only, and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
Schwab does not recommend the use of technical analysis as a sole means of investment research.
Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes please see schwab.com/indexdefinitions.
The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.