Today's Options Market Update

Stocks Mixed as Investors Close Out a Whipsaw Week

January 23, 2026 Joe Mazzola

A wild week of sharp dips and rallies approached its end with stocks mixed and risk measures still elevated. Next week features the Fed and mega-cap earnings.

#--bcn-image--5582{display: none !important;}

As a massive winter storm took aim at the East Coast, stocks were mixed early Friday while risk measures remained elevated despite Wall Street's recovery from Tuesday's sell-off. Gold hit a fresh record high overnight, volatility firmed, and the dollar stayed near recent lows. All this suggests market participants don't believe this week's other storm, the geopolitical one, has completely faded. It also didn't help that shares of Intel (INTC) tumbled 13% on disappointing guidance.

Investors stand at the precipice of the busiest two weeks of the quarter. Next week features a Federal Reserve meeting, several Treasury auctions, and earnings from mega caps. Washington is also in focus after the House passed its remaining appropriations bills yesterday, making a shutdown less likely. "Getting all 12 appropriations bills passed by the January 30 deadline now seems virtually assured, though things can still go sideways in the Senate," said Michael Townsend, managing director of legislative and regulatory affairs at Schwab. "But it's a notable development in the wake of last fall's acrimonious, record-long 43-day government shutdown. Neither party wanted a repeat of the shutdown."

Major indexes had another solid day Thursday, led by the "big three" sectors: communication services, consumer discretionary, and info tech. These include all the Magnificent Seven stocks, six of which report over the next two weeks. The market's quick comeback from Tuesday's "sell America trade" suggests retreats continue to be bought. "Buy the dip mentality is still alive and well," 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 unchanged at 4.25%.

The U.S. Dollar Index ($DXY) is lower by 0.47% to 97.90.

The CBOE Volatility Index^® (VIX) is down 1.47% to 15.42.

WTI Crude Oil (/CL) is higher by 2.59% to $60.90/barrel.

Bitcoin (BTC) is higher by 1.02% to $90,365.

Ethereum (ETH) is higher by 1.23% to $2,975.

Today's Bullish Activity

Shares of Life360 Inc. Equity (LIF + $15.20 to $70.01) are up over 27.00% today, moving back above the 50-day SMA, after the location-sharing service company reported record user additions and paid subscriber growth in Q4 and raised its revenue outlook for full-year 2025 results. Some highlights from the Q4 report include Monthly Active Users of 95.8 million, representing the highest Q4 MAU additions in the company's history, Paying Circles reached 2.8 million in Q4 2025, with full-year 2025 net additions of 576 thousand representing the highest annual net adds on record.

Going forward, Life360 expects full year 2025 Revenue of $486 - $489 million, up 31%-32% YoY, and adjusted EBITDA to exceed prior guidance, now at $87 - $92 million. The company also announced it expects 2026 MAU growth of 20%, per Bloomberg.

Option trading in LIF currently stands at 816 contracts, 58x the average daily volume with calls outpacing puts 7:1. Leading the way are the following trades, expirations, and strikes:

February 20th, 2026, 60.00 call accounted for 37 contracts; open interest is 49 contracts.
February 20th, 2026, 70.00 call accounted for 33 contracts; open interest is one contract.
February 20th, 2026, 75.00 call accounted for 33 contracts; open interest is 30 contracts.

New 52-week highs (328 new highs today): Agnico-Eagle Mines Ltd. (AEM + $0.81 to $214.50), CSX Corp. (CSX + $1.32 to $37.10), Gilea Sciences Inc. (GILD + $.35 to $135.49), Northrup Gruman Corp. (NOC + $1.18 to $671.62)

Notable Call Activity

Unusual call activity is noted today in Rezolute Inc. (RZLT + $0.19 to $3.46), as call volume currently stands at 11,287 contracts, 50x the average daily volume and 100x the put volume. Nearly all of the activity can be attributed to the February 20th, 2026, expiration month, specifically at the 5.00 strike calls. Over 10,200 contracts have traded hands, mostly on the buy side, including one large block order to buy 1,000 contracts at $0.19 when the bid/ask was $0.145 x $0.20. These appear to be new positions, given the open interest of only 591 contracts (suggesting bullish intent). Shares of RZLT have made a comeback of late, up from the 52-week low price of $1.07 set on December 11th, following news the company's lead drug failed in a Phase 3 trial.

Another name exhibiting unusual call activity today is Compass Pathways (CMPS + $0.21 to $7.34), as call volume has risen to 7,762 contracts in morning trading, 17x the average volume and 350x the put volume. Traders are buyers in the March 20th, 2026, expiration month, primarily at the 8.00 strike call, where multiple block orders totaling over 7,100 contracts have traded with prices ranging from $1.60 to $1.75. These appear to be new positions, given the open interest of 33 contracts (suggesting bullish intent). Shares of CMPS are higher today, following an upgrade by RBC Capital which raised its price target to $21.00.

Today's Bearish Activity

Shares of Intel Corp. (INTC - $8.42 to $45.90) are down over 15.00% today, after rising 152% in the past 12 months, following the company's earnings report and lackluster forecast for the upcoming year, as the company struggles with manufacturing and supply problems. Q4 revenue fell 4.1% to $13.7 billion. EPS was $0.15, excluding some items. Analysts had estimated sales of $13.4 billion and EPS of $0.09 on average, according to data compiled by Bloomberg. Intel's gross margin was 37.9% in Q4 an adjusted basis. For the current period, gross margin is expected to contract to 34.5%.

Intel's CEO Lip-Bu Tan, in his investor address, warned that low manufacturing yields and production snags have hindered Intel's ability to fill increasing demand for its chips. Intel also warned that it wouldn't have additional supply, particularly of lucrative server computer chips, until the end of the first quarter.

Intel's projections for Q1 revenue and earnings both fell well short of Wall Street estimates, with revenue expected to be $11.7 billion to $12.7 billion and the company expecting to break even in earnings per share.

Option trading in INTC currently stands at 1,338,755 contracts, 7x the average daily volume with calls outpacing puts 1.5:1. Leading the way are the following trades, expirations, and strikes:

January 23rd, 2026, 45.00 put accounted for 52,239 contracts; open interest is 11,693 contracts.
January 23rd, 2026, 47.00 call accounted for 42,908 contracts; open interest is 3,396 contracts.
January 23rd, 2026, 46.00 put accounted for 40,846 contracts; open interest is 22,952 contracts.

New 52-week lows (21 new lows today): Enovis Corp. (ENOS - $0.66 to $22.89), Flutter Entertainment PLC (FLUT - $4.24 to $176.94), McCormick & Company (MKC - $0.68 to $60.52), Paychex Inc. (PAYX + $0.45 to $107.64)

Notable Put Activity

There is unusual put activity today in the Lam Research Corp. (LRCX - $2.16 to $218.54). This activity equates to over 83,161 put contracts, 10x average daily put volume and 3x today's call volume. Nearly all the volume can be attributed to activity in the March 20th, 2026, expiration month where a large put vertical spread was purchased 40,000 times (80,000 total contracts). Traders paid $7.28 for the March 200.00/170.00 put vertical. This trade is likely a roll up from a long position at the 170.00 strike, given the 42,391 open interest at the 170 strike. Traders would typically transact this type of trade if they wanted the additional negative deltas from the higher strike puts (suggesting bearish intent). This could be a hedge against long shares, given the stock had already rallied 35% year-to-date to set a 52-week high price of $236.10 just yesterday.

Unusual activity has also been detected in Molson Coors Beverage (TAP - $0.53 to $49.23), as put volume stands at 33,514 contracts, 180x average volume and 350x call volume, in morning trading. Nearly all of the volume can be attributed to a large put vertical spread that was sold in the February 20th, 2026, expiration month. Traders sold over 16,000 (32,000 total contracts) of the February 47.50/45.00 put vertical spreads for an average price of $0.40 (suggesting neutral to bullish intent). There were only a collective 1,500 contracts of open interest between the strikes, so we assume this represents new positioning. Shares of TAP may be breaking out from a three-month channel but appear to be finding resistance at their current 200-day SMA.

Gauging Volatility

The Cboe Volatility Index (VIX - 0.22 to 15.42) is down by 1.47%, as equity markets are mixed in morning trading (DJI - 234, SPX + 11, COMPX + 125). VIX movement has occurred within a narrow range today (the intraday range is 15.31 to 16.21). The highest volume contract is currently the May 19th, 2026, 18.00 put (volume is 15,000 vs. open interest of 18,383).

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.

0126-2RF0