Today's Options Market Update

Investors Sell the Rip Despite Strong Nvidia Report

November 20, 2025 Nathan Peterson

All the major indices have dropped into negative territory around midday following a strong open as robust earnings from AI-darling Nvidia fails to fuel bullish sentiment.

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Solid results from Nvidia (NVDA) eased AI concerns and fueled an overnight tech rally. After the new day dawned, however, investors faced fresh economic news as September's nonfarm payrolls report showed a surprising climb of 119,000 jobs versus the expected 50,000. Beneath the headline, numbers were sweet and sour, with downward revisions to prior reports and a mild rise in the unemployment rate.Short-term Treasury yields declined but stocks kept their sharp gains.

Unemployment in September climbed to 4.4% from August's 4.3%, while September services employment growth outpaced growth in more lucrative professions and the government subtracted 33,000 jobs from prior reports. Jobs growth in August turned negative with the revisions. "Despite the move lower in Treasury yields, this report doesn't change our outlook for a December pause by the Fed," said Collin Martin, head of fixed income research and strategy, Schwab Center for Financial Research. "It suggests the labor market is cooling, but probably not enough to move the needle for the committee members that are worried about inflation."

Stocks rebounded Wednesday as tech led the way out of a four-day losing streak. The rally came despite odds of a rate cut dropping sharply to around 35% from above 90% a month ago, according to the CME FedWatch Tool, after Fed minutes from its last meeting noted policy makers sounding hesitant due to stubborn inflation and limited data caused by the government shutdown. The government won't release an October jobs report, and November data won't be available until December 16, after the Fed's meeting. Meanwhile, Walmart's (WMT) earnings this morning impressed but also reinforced ideas that shoppers are pointing their cars toward less costly stores.

Source: Schwab Center for Financial Research

Morning Rush

The 10-year U.S. Treasury yield (TNX) is slightly lower to 4.115%.

The U.S. Dollar Index ($DXY) is slightly lower to 100.15.

WTI Crude Oil (/CL) is lower by 0.13% to $59.36/barrel.

Gold prices have traded in a range of $4,034.00-$4,109.60 and were last seen trading higher by ~0.06% to $4,085.30/oz.

Natural Gas prices have traded in a range of $4.459-4.578 today and were last seen trading lower by 0.26% to $4.538.

Bitcoin (BTC) is lower by ~4.88% to $86,993.10 today.

Today's Bullish Activity

Shares of Nvidia Corp. (NVDA + $6.75 to $193.24) are gapping up this morning after the chip maker reported Q3 earnings of $1.30 per share ($0.04 beat) on Q3 revenue of $57.01B (above the $55.2B consensus estimate) as Q3 adjusted gross margin came in at 73.6% (above the 72.7% expected). Nvidia’s Q3 data center revenue of $51.20B also came in above the $49.34B analyst had expected. The company also issued upbeat guidance as Q4 revenue is expected to be $65B, ±2%, versus the $62.17B analysts were expecting, and Q4 GAAP and non-GAAP gross margins are expected to be 74.8% and 75.0% respectively. Calls are outnumbering puts nearly 2:1 with the November 21^st200.00 call seeing the most action from traders (volume is 148,080).

Also trading to the upside this morning is Dow-component Walmart Inc. (WMT + $6.07 to $106.68) after the retail giant reported Q3 adjusted earnings of $0.62 per share ($0.02 beat) on Q3 revenue that increased 5.8% YoY to $179.5B (above the $177.44B FactSet consensus estimate) as US same-store sales increased 4.2%. The company also raised its fiscal-year 2026 adjusted EPS guidance to a range of $2.58-2.63 (from $2.52-2.62) and FY26 revenue growth guidance to a range of 4.80-5.10% (from 3.75-4.75%). Calls are outnumbering puts better than 2:1 with the December 19^th 115.00 call leading the way (volume is 20,176).

New 52-week highs (81 new highs today): Cisco Systems Inc. (CSCO + $1.38 to $79.77), Johnson & Johnsons (JNJ - $0.38 to $202.13), Lumentum Holdings Inc. (LITE + $10.58 to $279.50)

Notable Call Activity

Some unusual call activity (~100:1 calls over puts) is being seen in Champion Homes Inc. (SKY + $1.04 to $77.92) which is primarily driven by a 1,500 contract block that was bought on the December 19^th 80.00 call at the ask price of $3.30 (open interest is 8). 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.

Today's Bearish Activity

Shares of Jacobs Solutions Inc. (J - $7.50 to $137.55) are falling to a three-month low this morning even though the provider of infrastructure, advanced facilities and consulting services reported better-than-expected earnings earlier this morning. The company reported Q3 adjusted earnings of $1.75 per share ($0.07 miss) on revenue of $3.155B (just above the $3.15B FactSet consensus estimate). Looking ahead, Jacobs Solutions guided FY26 adjusted EPS to a range of $6.90-7.30 (versus the $7.05 FactSet consensus estimate) and FY26 revenue to a range of $9.217-9.564B (above the $8.989B expected). Calls are outnumbering puts ~2:1 with the December 19^th 150.00 call being the highest volume contract (volume is 353).

Also trading to the downside this morning is Bath & Body Works Inc. (BBWI - $4.78 to $16.26) after the specialty retailer reported Q3 adjusted EPS of $0.35 ($0.05 miss) on Q3 revenue of $1.594B (below the $1.634B expected). Looking ahead, Q4 EPS is expected to be $1.70 (below the FactSet estimate of $2.17) and BBWI said that FY25 net sales growth is now expected to decline in the low single digits versus the prior outlook of +1.5-2.7%. Puts are outpacing calls ~3:1 with the November 21^st 20.00 put garnering the most attention from traders (volume is 32,210).

New 52-week lows (76 new lows today): Clorox Company Inc. (CLX + $0.58 to $99.01), Kinsale Capital Group Inc. (KNSL - $8.35 to $371.16), Thomson Reuters Corp. (TRI - $1.16 to $133.15)

Notable Put Activity

Some unusual put activity (~100:1 puts over calls) is being seen in ResMed Inc. (RMD - $2.52 to $242.47) which is primarily driven by a 3,160 contract block that was bought on the July 2026 200.00 put for $8.50 when the bid/ask spread was $6.40 x $9.40 (open interest is 0). We know that this block is a new position based on the open interest figure, and we can assume that the intent is bearish in nature since the trade took place above the midpoint of the bid/ask spread.

Volume Signals

News Corp. (NWSA + $0.09 to $25.06): Option volume is running at ~94x the daily average on this media company as option traders primarily target the April 2026 30.00 call. Volume on this contract is 10,234 versus open interest of 175, so we know that the volume primarily represents new positioning. The bulk of the transactions consisted of various-sized blocks that were bought at various times for between $0.55-0.60 each, which suggests bullish intent.

Steven Madden Ltd. (SHOO + $0.90 to $38.07): Option volume is running at ~77x the daily average on this footwear, apparel and accessories retailer which is primarily being driven by some spread activity on the December 19^th expiration earlier this morning:

40.00 call (open interest is 4,445): A 3,000 contract block was bought for $1.50 when the bid/ask spread was $1.20 x $1.60.
45.00 call (open interest is 7): A 3,000 contract block (broken into 1,800 & 1,200 blocks) was sold for $0.33 when the bid/ask spread was $0.25 x $0.65.

Assuming both these blocks are new positions, it appears a $5.00-wide bull call spread was established for a net debit of $1.17 (x 3,000 contracts x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that SHOO will close above the break-even price of $41.17 at expiration.

SharkNinja Inc. (SN + $0.41 to $87.81): Option volume is running at ~8x the daily average on this household products maker which is primarily being driven by two large blocks that simultaneously traded on the December 19^th expiration earlier this morning:

92.50 call (open interest is 1,315): A 2,500 contract block was bought for $3.70 when the bid/ask spread was $2.65 x $4.20.
100.00 call (open interest is 992): A 2,500 contract block was sold for $1.55 when the bid/ask spread was $0.85 x $2.80.

We know that both these blocks are new positions based on the respective open interest figures and it appears a $7.50-wide bull call spread was established for a net debit of $2.15 (x 2,500 contracts x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that SN will close above the break-even price of $94.65 at expiration.

Gauging Volatility

The Cboe Volatility Index (VIX + 2.06 to 25.72) has been on both sides of the unchanged line today (intraday range is 19.28-25.75), as equity markets are lower around the midday mark (DJI - 58, SPX – 16, COMP - 90). VIX option volume is heavy today at 822,631 contracts, and the activity has been call-biased as the volume put/call ratio is roughly 2:1.

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