Today's Options Market Update

Fresh Tech Headwind from AMD Precedes Alphabet

February 4, 2026 Joe Mazzola

A 10% early drop in Advanced Micro Devices after its guidance disappointed put new pressure on tech ahead of Alphabet's results later. ADP jobs data missed consensus at 22,000.

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Tech turbulence persists, and the culprit this time is Advanced Micro Devices (AMD). Shares capsized 9% after the chipmaker's earnings topped consensus but guidance failed to please. AMD's skid helped push the tech-heavy Nasdaq down again after yesterday's sharp losses, but the broader market advanced slightly and direction was muted.

Tech's shellacking yesterday was attributed to pressure on software companies after release of an AI automation tool from Anthropic that services legal work. This exacerbated fears about risks to the core businesses of the software industry, shares of which were already bruised double-digits year-to-date heading into Tuesday. More AI-related results await investors after the close as Alphabet (GOOGL) reports, followed by Amazon (AMZN) late tomorrow.

Another factor Tuesday was investors rotating out of tech—including AI names—and into a mix of defensive and cyclical sectors, a trend that's flared for months. The current rotation occurred at the heart of earnings season, which is "tracking a healthy path so far," said Liz Ann Sonders, chief investment strategist, and Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research (SCFR). Blended earnings growth is around 11%. Expectations remain high, especially for AI companies, raising the bar. Investors want to see AI spending justified by showing up in revenue growth, making earnings from Alphabet and Amazon important test cases.

Source: Schwab Center for Financial Research

Morning Rush

The 10-year U.S. Treasury yield (TNX) is unchanged at 4.28%.

The U.S. Dollar Index ($DXY) is higher by 0.25% to 97.69.

The CBOE Volatility Index^® (VIX) is up 16.94% to 21.07.

WTI Crude Oil (/CL) is higher by 2.77% to $64.96/barrel.

Bitcoin (BTC) is lower by 4.72% to $73,060.

Ethereum (ETH) is lower by 9.03% to $2,096.

Today's Bullish Activity

Shares of Super Micro Computer Inc. (SMCI + $4.34 to $34.01) are up around 14.00% today, after the company handily topped earnings expectations and gave a forecast for sales in the current quarter that signaled strong demand for its gear to run AI data centers. Per the report, revenue more than doubled to $12.7 billion in the quarter that ended Dec. 31, with EPS coming in at $0.69. Analysts, on average, projected EPS of $0.49 on revenue of $10.4 billion, per Bloomberg.

Super Micro also provided a forecast for revenue of $12.3 billion in the current period, and fiscal Q3 earnings, excluding some items, will be $0.60 per share. Per Bloomberg, analysts polled had projected EPS of $0.52 on sales of $10.2 billion. Looking ahead, the company projected revenue of at least $40 billion in the current fiscal year. It had previously forecast revenue of at least $36 billion.

Option trading in SMCI currently stands at 288,901 contracts, 7x the average daily volume with calls outpacing put 2.5:1. Leading the way are the following trades, expirations, and strikes:

February 6th, 2026, 36.00 call accounted for 16,252 contracts; open interest is 18,406 contracts.
February 6th, 2026, 30.00 call accounted for 9,122 contracts; open interest is 10,775 contracts.
February 6th, 2026, 34.00 call accounted for 8,301 contracts; open interest is 15,528 contracts.

New 52-week highs (573 new highs today): Huntington Bancshares Inc. (HBAN + $0.52 to $18.91), Coterra Energy Inc. (CTRA + $1.40 to $30.34), Transocean Inc. (RIG + $0.20 to $5.18), Exxon Mobile Corp. (XOM + $2.50 to $146.23)

Notable Call Activity

Unusual call activity is noted today in Coty Inc. (COTY + $0.21 to $3.37), as call volume currently stands at 14,016 contracts, 50x the average daily volume and 250x the put volume. Most of the activity can be attributed to a large block buy orders in the February 20th, 2026, expiration month. Traders are paying between $0.45 to $0.55 for the 3.00 strike calls, primarily on the offer. A total of 10,800 contracts have been purchased. With only 1,674 contracts of open interest, these appear to be new positions (suggesting bullish intent). Shares of COTY are up over 6.33%, bucking the market sell-off, ahead of an expected earnings release tomorrow.

Another name exhibiting unusual call activity today is Goodyear Tire & Rubber (GT + $0.31 to $10.27), as call volume has risen to 49,272 contracts in morning trading, 72x the average volume and 160x the put volume. Traders are most active in the March 20th, 2026, expiration, particularly at the 10.00 and 11.00 strike calls where over 36,000 contracts have traded, collectively, mostly on the buy side. One trade of note was a block purchase for 14,000 contracts of the 11.00 strike calls for $0.52, the offer price. With only 1,246 contracts of open interest, we can assume this was new positioning (suggesting bullish intent). Shares of GT just broke out of a rising wedge pattern today and are up over 50% from their 52-week low price of $6.51, set last October.

Today's Bearish Activity

Shares of Advanced Micro Devices Inc. (AMD - $38.00 to $204.11) are down over 15.00% today, the biggest decline since 2018, after the company's sales forecast underwhelmed investors, even as the Q4 revenue and earnings topped expectations. Q4 sales rose 34% to $10.3 billion, beating the $9.7 billion average estimate. EPS came in at $1.53 a share, minus certain items. Analysts had projected $1.32 on average, per Bloomberg. One item of note was AMD's data center business, which rose 39% to $5.38 billion in the period. Analysts had predicted $4.97 billion on average.

Going forward, AMD expects Q1 sales will be roughly $9.8 billion, plus or minus $300 million, which was lower than some projections that topped $10 billion. The company also forecasts gross margins of 55%, basically in line with estimates.

Option trading in AMD currently stands at 820,574, contracts, 6x the average daily volume with calls and puts basically even. Leading the way are the following trades, expirations, and strikes:

February 6th, 2026, 210.00 put accounted for 27,449 contracts; open interest is 5,781 contracts.
February 6th, 2026, 220.00 call accounted for 26,199 contracts; open interest is 1,126 contracts.
February 6th, 2026, 200.00 put accounted for 25,968 contracts; open interest is 6,699 contracts.

New 52-week lows (228 new lows today): Boston Scientific Corp. (BSX - $13.12 to $78.50), Snap Inc. (SNAP - $0.13 to $5.96), PayPal Holdings (PYPL - $1.36 to $40.33), Mara Holdings Inc. (MARA - $1.07 to $7.98)

Notable Put Activity

There is unusual put activity today in Amphenol Corp. (APH - 17.10 $to $129.90). This activity equates to over 19,402 put contracts, 5x average daily put volume and 3x call volume. A large block trade in the April 17th, 2026, expiration accounted for over half of that volume. Traders bought 10,815 contracts, paying $1.85 when the bid/ask was $0.75 x $2.60, so above the mid-point of the bid/ask spread. There were only 495 contracts of open interest, so we know this represents new positioning (suggesting bearish intent). Shares of APH are down over 11.00% today, post-earnings, and are trading below their 100-day SMA for the first time since last April.

Unusual activity has also been detected in Silicon Laboratories (SLAB + $67.10 to $203.72), as put volume stands at 5,060 contracts, 600x average volume and 5x call volume, in morning trading. Nearly all the volume can be attributed to multiple block trades in the February 20th, 2026, expiration month, as traders target the 200.00 strike puts. Over 2,000 contracts have been purchased with prices ranging from $1.00 to $1.50, primarily at the offer. There was 0 open interest, so we know these are new positions. With shares up over 49% today, following a substantial earnings beat, these could be hedges against long share holdings. Also noteworthy, Texas Instruments said that is has agreed to acquire SLAB for $231.00 per share in an all-cash deal.

Gauging Volatility

The Cboe Volatility Index (VIX + 3.07 to 21.07) is up by 16.94%, as equity markets are lower across the board, led by tech weakness, in early afternoon trading (DJI - 56, SPX - 71, COMPX - 515). VIX movement has occurred within a wider range today (the intraday range is 17.47 to 21.24). The highest volume contract is currently February 18th, 2026, 25.00 call (volume is 32,817 vs. open interest of 434,179).

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