Today's Options Market Update
May Starts Merrily on Apple Earnings, Peace Hopes
After Apple (AAPL) became the latest mega cap to deliver impressive earnings, major indexes mostly built on their sizzling rally early today as crude dropped on reports that Iran might have offered a new peace proposal. Focus now shifts to manufacturing data, while next week brings a full host of jobs reports including April nonfarm payrolls.
As the calendar page flips, a slew of semiconductor earnings loom, highlighted next week by Palantir (PLTR), Advanced Micro Devices (AMD), and Arm Holdings (ARM). One theme reinforced this week is that AI capex, or capital spending, isn't slowing, as outlays could approach $700 billion in 2026. Markets are rewarding AI spending that shows near-term monetization, as seen with Alphabet (GOOGL), and punishing spending without clear incremental returns—something analysts criticized after viewing Meta Platforms' (META) results. Expect sharper demands for AI return on investment disclosure next quarter.
The S&P 500 Index and Nasdaq Composite forged new all-time highs yesterday, with 10 of 11 sectors up, sealing an April with 10% gains for the broader market that were its best for any month in five years. Only tech swung and missed Thursday. Though major indexes track for a positive week, so do Treasury yields, a note of caution. The April ISM Manufacturing PMI® data at 10 a.m. ET could affect trading in both stocks and Treasuries. Consensus is for 53.1%, up from 52.7% in March, according to Briefing.com, meaning the fourth straight month above the 50% needed for expansion.
Source: Schwab Center for Financial Research
Morning Rush
The 10-year U.S. Treasury yield (TNX) is lower by 3 bps to 4.37%.
The U.S. Dollar Index ($DXY) is unchanged at 98.06.
The CBOE Volatility Index® (VIX) is unchanged at 16.87.
WTI Crude Oil (/CL) is lower by 3.07% to $101.80/barrel.
Bitcoin (BTC) is up by 2.50% to $78,660.
Ethereum (ETH) is up by 2.00% to $2,316.
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Today's Bullish Activity
Shares of Reddit Inc. (RDDT + $13.30 to $160.53) are up more than 9% after topping Q1 estimates and guiding Q2 revenue to $715–$725M (above Street). Q1 revenue rose 69% to $663M vs. $609.3M est.; Adj. EBITDA and net income were $266.0M and $204.0M respectively. Daily unique visitors rose 17% YoY to 126.8M (in line). The company guided Q2 Adj. EBITDA to $285–$295M (vs. $275.5M est.) and said growth should be driven by its ad platform as it diversifies beyond a concentrated top-advertiser base.
Analysts raised price targets, including Goldman Sachs (to $200 from $180), Truist (to $265 from $260), and Evercore ISI (to $300 from $290).
Option trading in RDDT currently stands at 62,639 contracts, 12x average with calls outpacing puts 2:1. Leading the way are the following trades, expirations, and strikes:
- May 1st, 2026, 170.00 call accounted for 3,678 contracts; open interest is 3,821 contracts.
- May 1st, 2026, 165.00 call accounted for 3,382 contracts; open interest is 2,417 contracts.
- May 1st, 2026, 162.50 call accounted for 3,344 contracts; open interest is 1,781 contracts.
New 52-week highs (283 new highs today): Intel Corp. (INTC + $4.81 to $99.29), Micron Technology (MU + $15.84 to $533.00), Nokia Corp. (NOK + $0.63 to $13.54), Cerus Corp. (CERS + $0.52 to $2.55), Advanced Micro Devices (AMD + $2.76 to $357.25)
Notable Call Activity
Call activity is elevated in Somnigroup International (SGI + $0.03 to $75.86): 45,173 calls traded (34x avg.; puts 4,500x avg.). Flow appears driven by three large blocks buying 22,300 June 18, 2026 85/100 call verticals (44,600 total contracts) for an average $1.80, slightly below the offer. With ~800 total open interest, this looks like new positioning (suggesting bullish intent). Shares are ~23% below the 52-week high ($98.56) and below key moving averages. Earnings are slated for May 8th.
Another name showing unusual call activity is Twilio Inc. (TWLO + $28.70 to $176.76), with 24,994 calls traded (10x average and 4x puts). A series of block call vertical spreads in the May 1st, 2026 expiration drove the flow, as traders rolled 4,000 call positions up from the 160.00,165.00, and 170.00 strikes up to the 175.00 and 190.00 strike calls. Traders may have been caught off guard, as it appears many of the trades at the in-the-money strikes (160.00, 165.00 and 170.00) were closing trades to short positions. Shares of TWLO are up over 20.00% today from a post earnings beat, taking the shares to a 52-week intraday high price of $179.48.
Today's Bearish Activity
Shares of Roblox Corp. (RBLX - $10.90 to $44.36) are down nearly 20% after Q1 daily active users missed estimates and the company cut its full-year bookings outlook. Daily active users (DAU)s were 132 million vs. 143.8 million expected (still +35% YoY), and bookings were $1.7B vs. the $1.73B est. Hours engaged and revenue also came in light.
Roblox blamed the bookings shortfall on new safety features that limit minors' platform use, calling it a "safety headwind." Full-year bookings guidance was lowered to about $7.6B (vs. up to $8.55B previously), and the company expects another quarter of user declines.
Analysts lowered price targets after the report, including Goldman Sachs (to $65 from $125), Wedbush (to $65 from $80), and Oppenheimer (to $82 from $130).
Option trading in RBLX currently stands at 62,897 contracts, 27x the average daily volume with calls and puts basically even. Leading the way are the following trades, expirations, and strikes:
- May 22nd, 2026, 50.00 call accounted for 4,620 contracts; open interest is three contracts.
- May 1st, 2026, 43.00 put accounted for 3,878 contracts; open interest is 455 contracts.
- May 1st, 2026, 45.00 call accounted for 1,330 contracts; open interest is 22 contracts.
New 52-week lows (40 new lows today): Roblox Corp. (RBLX - $10.90 to $44.36), Clorox Company (CLX - $8.71 to $87.73), Tractor Supply Company (TSCO - $1.08 to $34.02), Abbot Laboratories (ABT - $0.81 to $89.98), 22nd Century Group Inc. (XXII - $0.23 to $1.33)
Notable Put Activity
Unusual put selling in Danaher (DHR -$3.86 to $175.08): 8,373 puts traded (12x avg.; 7x calls). Two blocks sold 6,600 Jun 18, 2026, 160 puts at ~$1.87 (vs. $1.85 x $2.10); open interest is 108, suggesting largely new positioning. Execution near the bid supports a sell-to-open read (premium collection). Put selling can signal neutral-to-bullish intent (willingness to own at lower stock price/ support view near $160). Shares tagged a 52-week low ($174.60) and are ~-25% YTD.
Unusual put activity is being seen in the iShares US Real Estate ETF (IYR -$0.20 to $102.43): 32,204 puts traded (20x avg.; 115x calls). Over half the flow is due to a May 15, 2026 put spread—10,272 spreads bought for ~$0.42 (near the offer). The open interest of around 12,200 contracts suggests adds to current positions. The structure looks like a defined-risk downside hedge after IYR's >10% rebound from the mid-March low (~$92). Real estate's sensitivity to rates could be keeping demand elevated for short-dated protection.
Gauging Volatility
The Cboe Volatility Index (VIX - 0.02 to 16.87) is virtually unchanged today, as equity markets are mixed in morning trading (DJI - 53, SPX + 33, COMPX + 230). VIX movement has occurred within a narrow range today (the intraday range is 16.44 to 17.39). The highest volume contract is currently the May 19th, 2026, 23.50 call (volume is 23,608 vs. open interest of 86,404).
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