Today's Options Market Update
Stocks Rise Early as Yields, Oil Hold Steady
Stocks rose in early trading as Treasury yields stabilized near long-term highs and oil was little changed, but major indexes were poised to register weekly declines for the first time since late July.
Despite the calendar turning to late August and earnings season winding down, next week looks to be eventful, at least on the economic and policy fronts. Wednesday brings the July Personal Consumption Expenditures (PCE) price index and Nvidia (NVDA) earnings. The Federal Reserve's annual Jackson Hole symposium kicks off Thursday, with a speech from Chair Kevin Warsh slated for Friday.
Stocks slumped Thursday as Treasury yields and oil prices rose again. Yields retraced almost all of Wednesday's drop, despite Treasury Secretary Scott Bessent saying he had a "big toolkit" to drag yields lower. "Bessent's 'buyback put' is fading fast," said Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research (SCFR).
Source: Schwab Center for Financial Research
Morning Rush
The 10-year U.S. Treasury yield (TNX) is higher by ~4 basis points to 4.73%.
The U.S. Dollar Index ($DXY) is lower by 0.08 at 98.81.
WTI Crude Oil (/CL) August futures are higher by 0.15% to $86.98/barrel.
Gold prices have traded in a range of $4,565.50-4,687.20 and were last seen trading higher by ~2.49% to $4,685.00/oz.
Natural Gas prices for September futures have traded in a range of $2.74-2.80 today and were last seen trading higher by 0.95% to $2.76.
Bitcoin (BTC) is higher by ~6.06% over the last 24 hours to $77,518.33 today.
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Today's Bullish Activity
Shares of Ross Stores Inc. (ROST + $8.40 to $237.39) after the discount retailer reported fiscal Q2 adjusted earnings of $2.06 per share ($0.11 beat) on Q2 revenue that increased 13% y/y to $6.3B (above the $6.2B expected), with comparable sales at stores open at least a year rising 10.0% y/y, exceeding the forecasted 7.7% gain. Looking ahead, the company raised its full-year earnings outlook to $8.61-$8.77 versus prior guidance of $7.50-$7.74, noting the benefit of tariff refunds. Calls are slightly outnumbering puts with the August 21st 240.00 call being the highest volume contract (volume is 1,151).
Also trading to the upside this morning is O-I Glass Inc. (OI + $0.78 to $7.16) after Citigroup upgraded the glass bottle manufacturer. Analysts at Citigroup cited valuation after recent weakness with shares down nearly 52% year-to-date. Calls are outnumbering puts ~5:1 but volume is light with the September 18th 7.00 call being the highest volume contract (volume is 30).
New 52-week highs (38 new highs today): Bhp Billiton Ltd. ADR (BHP + $2.58 to $96.21), Freeport-Mcmoran Inc. (FCX + $4.57 to $75.79), Target Corp. (TGT + $4.55 to $162.80)
Notable Call Activity
Some unusual call activity (~100:1 calls over puts) is being seen in ACV Auctions Inc. (ACVA - $0.16 to $7.51) as option traders primarily target the September 18th 5.00 call. Volume on this contract is 910 (vs. open interest of 21), which consisted of various-sized blocks that were bought at various times between $2.69-$2.82. We know that this activity represents new positioning based on the open interest figure and we can assume that the intent is bullish since they took place near the ask price.
Today's Bearish Activity
Shares of OSI Sysytems Inc. (OSIS - $19.29 to $198.80) are under pressure this morning after the electronic component manufacturing company issued full-year revenue guidance that came in below the Street's expectations, noting the impact on its security segment from the Mideast disruptions. However, the company did report Q4 earnings that slightly topped estimates, said demand remains encouraging, and announced an increase to its share buyback program. Puts are slightly outnumbering calls in light volume with the August 21st 190.00 put being the highest volume contract (volume is 133).
Also trading to the downside this morning is Boston Beer Company Inc. (SAM - $7.35 to $183.47) after the beer maker announced that the departure of its Chief Financial Officer (CFO) Diego Reynoso and named Chief Accounting Officer Matthew Murphy as interim CFO. Calls are outnumbering puts ~9:1 in light volume with the August 21st 200.00 call seeing the highest volume contract (volume is 200).
New 52-week lows (26 new lows today): AppLovin Corp. (APP - $8.16 to $300.61), Microvision Inc. (MVIS - $0.01 to $1.74), Xchg Limited Ads (XCH + $4.30 to $4.53)
Notable Put Activity
Some unusual put activity (~100:1 puts over calls) is being seen in Carlyle Group Inc. (CG + $0.68 to $48.67) which is primarily being driven by a 7,950-contract block on this investment firm that was bought on the September 18th 2026 42.50 put for $0.37 when the bid/ask spread was $0.20 x $0.45. Open interest is 1,298 so we can assume that we have some fresh positioning and bearish intent since the trade took place above the midpoint of the bid/ask spread.
Volume Signals
Genco Shipping & Trading Ltd. (GNK + $0.45 to $26.54): Option volume is running at ~35x the daily average on this drybulk shipping company as option traders primarily target the September 18th 30.00 call. Volume on this contract is 4,837 versus open interest of 11, so it's likely that nearly all the volume represents fresh positioning. The bulk of the transactions consisted of various-sized blocks that were bought near the same time for $0.15—notably a 479 block—which suggests bullish intent.
Ethan Allen Interiors Inc. (ETD + $0.43 to $23.36): Option volume is running at ~33x the daily average on this upscale furniture retailer which is primarily being driven by activity on the September 18th 2026 24.75 call. Volume on this contract is 3,644 versus open interest of 68, so we know that nearly all the volume represents fresh positioning. The bulk of the transactions consisted of various-sized blocks that were bought around the same time for $0.40, which suggests bullish intent.
Gauging Volatility
The Cboe Volatility Index (VIX – 0.69 to 15.32) has been in negative territory all day (the intraday range is 15.23-15.88), as equity markets are higher around the midday mark (DJI + 401, SPX + 41.30, $COMP + 145.53, RUT + 21.80). VIX option volume has been above average today at 957,082 contracts, and calls are outpacing puts roughly 8:1 so far today.
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