Today's Options Market Update

Wall Street flatlined early Tuesday following Monday's "risk-on" rally inspired by weekend events in Venezuela. Market participants face a day that's sparse in terms of data and earnings, potentially leaving geopolitics front and center. On a lighter note, despite yesterday's gains, the "Santa Claus rally" failed to materialize for the third year in a row, with Monday the last day of the traditional seven-session window. The S&P 500 index fell 0.1% over those seven days.

The data calendar gets more crowded after today, culminating in Friday's nonfarm payrolls report for December. Tomorrow morning brings ADP employment for December, along with November job openings. Analysts expect ADP employment to rise around 45,000, up sharply from a negative 32,000 in November but still low historically. Estimates for Friday's government payrolls data have jobs growth near 55,000, with unemployment remaining at 4.6% in December and weekly wages up 0.3%. Jobs growth has averaged a lackluster 22,000 over the three most recent months of data.

Major U.S. indexes rose Monday, with strength most evident in the Dow Jones Industrial Average and the small-cap Russell 2000 (RUT). This partly reflects a rally in energy stocks on hopes oil companies can have access to Venezuela's supplies. The DJIA closed at a record high. Consumer stocks also had a solid session. Info tech slipped, but the Nasdaq Composite still snapped a five-session losing streak for its first positive close of 2026.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is lower by nearly 2 basis points to 4.183%.

The U.S. Dollar Index ($DXY) is higher by 0.334 to 98.604.

WTI Crude Oil (/CL) is lower by 0.38% to $58.10/barrel.

Gold prices have traded in a range of $4,437.90-$4,501.80 and were last seen trading higher by ~0.80% to $4,487.20/oz.

Natural Gas prices have traded in a range of $3.338-3.502 today and were last seen trading lower by 5.17% to $3.341.

Bitcoin (BTC) is lower by ~0.23% to $93,642.28 today.

Shares of Microchip Technology Inc. (MCHP + $4.91 to $71.97) are trading at a five-month high this morning after the chip maker said last night after the bell that it expects fiscal Q3 net sales of approximately $1.185B, which is above the company’s prior guidance of $1.109-1.149B. Calls are outpacing puts ~8:1 with the March 20^th 57.50 call being the highest volume contract (volume is 6,118).

Also trading to the upside this morning is Brunswick Corp. (BC + $4.41 to $80.08) after Jefferies upgraded the boat maker to “Buy” from “Hold” and hiked their price target on the stock to $115.00 from $65.00. Analysts at Jefferies cited the company’s “structurally improved” business model, lean channel inventories and improved demand tailwinds and believe accelerating revenue trends, higher margins and operational leverage will translate into earnings outperformance. Calls are outnumbering puts ~2:1 with the February 20^th 80.00 call leading the way (volume is 121).

New 52-week highs (147 new highs today): Alcoa Corp. (AA + $2.18 to $63.62), Dollar General Corp. (DG + $5.03 to $143.97), Freeport-McMoRan Inc. (FCX + $1.50 to $55.90)

Some unusual call activity (~70:1 calls over puts) is being seen in GlobalFoundries Inc. (GFS + $2.31 to $39.44) as option traders primarily target the July 17^th 40.00 call. Volume on this contract is 15,061 (vs. open interest of 48), which mostly consisted of a 12,040 contract block that was bought at the ask price of $5.10. 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 at the ask price.

Shares of American International Group Inc. (AIG - $6.13 to $78.25) are under pressure this morning following news that Chief Executive Officer Peter Zaffino is retiring and will transition to executive chair. AIG has appointed insurance industry veteran Eric Anderson as CEO-elect and president starting February 16th. Anderson is expected to fully assume the role of CEO and join the AIG board after June 1^st, 2026. Calls are outpacing puts ~8:1 with the March 20th 110.00 call seeing the most action from traders (volume is 30,036).

Also trading to the downside today is Lennar Corp. (LEN - $1.76 to $103.64) after UBS downgraded the home builder to “Neutral” from “Buy” and cut their price target on the stock to $122.00 from $137.00. UBS analyst John Lovallo said in a research note that Lennar’s path back to 20%+ gross margins could be delayed in the absence of a stronger-than-anticipated industry recovery. Calls and puts are trading roughly even with the February 20^th 100.00 put being the highest volume contract (volume is 534).

New 52-week lows (31 new lows today): Carrier Global Corp. (CARR - $1.57 to $52.22), Harley-Davidson Inc. (HOG + $0.28 to $20.80), Lamb Weston Holdings Inc. (LW + $0.31 to $41.61)

Some unusual put activity (~60:1 puts over calls) is being seen in Carrier Global Corp. (CARR - $0.95 to $52.84) which is primarily driven by a 13,740 contract block that was sold on the February 20^th 45.00 put for $0.65 when the bid/ask spread was $0.55 x $1.05 (open interest is 124). We know that this block is a new position based on the open interest figure, and we can assume that the block trader believes that CARR will close above the $45.00 price level and/or is comfortable taking a long 1.374M share position in the stock at an effective purchase price of $44.35 if CARR closes below $45.00 at expiration.

CEA Industries Inc. (BNC + $0.11 to $6.52): Option volume is running at ~280x the daily average on this provider of environmental control and other technologies and services as option traders primarily target the June 18^th 15.00 call. Volume on this contract is 5,867 versus open interest of 3, so it’s likely that nearly all the volume primarily represents new positioning. The majority of the transactions consisted of various-sized blocks that were bought at various times for between $0.40-$0.55 each, which suggests bullish intent.

Centuri Holdings Inc. (CTRI + $0.40 to $26.54): Option volume is running at ~163x the daily average on this provider of utility infrastructure services which is primarily driven by a 3,000 contract block that was bought on the August 21^st 30.00 call for $2.54 when the bid/ask spread was $1.55 x $2.65 (open interest is 5). We know that this block is a new position based on the open interest figure, and we can assume that the intent is bullish in nature since the trade took place above the midpoint of the bid/ask spread.

Goodyear Tire & Rubber Co. (GT + $0.24 to $9.09): Option volume is running at ~29x the daily average on this tire maker which is primarily driven by an 8,000 contract block that was bought on the February 20^th 10.00 call at the ask price of $0.30 (open interest is 674). We know that this block is a new position based on the open interest figure, and we can assume that the intent is bullish in nature since the trade took place at the ask price.

The Cboe Volatility Index (VIX + 0.04 to 14.24) has been on both sides of the unchanged line today (the intraday range is 14.63-15.21), as equity markets are modestly higher across the board around the midday mark (DJI + 206, SPX + 13, $COMP + 32). VIX option volume is below average today at 272,503 contracts, and calls are outpacing puts ~3:2 so far today.