Today's Options Market Update

After switching gears yesterday on easing geopolitical concerns, Wall Street powered higher again this morning amid tech strength as investors mulled a full helping of economic data, with more on the way.

Today's key data point is the November Personal Consumption Expenditure (PCE) price index, due at 10 a.m. ET. Annual PCE remains stubbornly above the Federal Reserve's 2% goal and could reinforce ideas that a rate cut isn't in the cards at the Fed's meeting next week. Chances were 5% heading into PCE, according to the CME FedWatch Tool. In data before the open, the government's final third quarter gross domestic product (GDP) estimate rose to 4.4% from 4.3% on a seasonally adjusted annual basis, while initial jobless claims of 200,000 met expectations. Both numbers suggest economic vitality.

Stocks posted sizzling gains Wednesday as political drama receded on both sides of the Atlantic. President Trump arrived in Europe and pledged not to use armed forces in Greenland. Later, he rescinded his threats of related tariffs on NATO countries, saying he'd reached a "framework" agreement. Back home, Supreme Court justices sounded skeptical of Trump's effort to fire Fed Governor Lisa Cook. The Court's decision has major implications for Fed independence, and some of Wednesday's strength in stocks and bonds might have reflected easing worries over the ruling, expected later this year.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is higher by ~2 basis point to 4.273%.

The U.S. Dollar Index ($DXY) is lower by 0.294 to 98.467.

WTI Crude Oil (/CL) is lower by 1.78% to $59.54/barrel.

Gold prices have traded in a range of $4,772.70-$4,863.10 and were last seen trading higher by ~0.49% to $4,862.00/oz.

Natural Gas prices have traded in a range of $4.919-5.65 today and were last seen trading higher by 13.72% to a four-year high of $5.572.

Bitcoin (BTC) is lower by ~0.19% to $89,276.74 today.

Shares of Procter & Gamble Co. (PG + $3.16 to $149.22) are moving higher this morning after the consumer products maker reported Q2 adjusted EPS of $1.88 ($0.02 beat) on Q2 revenue that increased 1.49% year-over-year to $22.208B (slightly below the $22.282B expected). Looking ahead, the company narrowed full-year 2026 GAAP EPS guidance to $6.83-7.09 from $6.71-7.09 (vs. the $6.91 consensus estimate). Shares of PG are trading above the 100-day Simple Moving Average (SMA) for the first time since October. Calls are outnumbering puts nearly 2:1 with the January 23^rd 150.00 call seeing the most action from traders (volume is 2,298).

Also trading to the upside this morning is Enphase Energy Inc. (ENPH + $3.33 to $39.30) after Citigroup upgraded the solar company to “Neutral” from “Sell” and bumped their price target on the stock to $37.00 from $31.00. Citigroup analyst Vikram Bagri sees limited downside risk for the stock as further market share loss is unlikely to occur at this stage. Calls are outnumbering puts better than 2:1 which is primarily being driven by activity on the February 20^th 43.00 call (volume is 5,069).

New 52-week highs (353 new highs today): Albemarle Corp. (ALB + $5.03 to $185.09), Boeing Company (BA + $2.43 to $252.50), Johnson & Johnson (JNJ + $1.84 to $219.85)

Some unusual call activity (~140:1 calls over puts) is being seen in athletic equipment, apparel and footwear retailer Amer Sports Inc. (AS + $0.51 to $36.38) which is primarily driven by activity on the March 20^th 40.00 call. Volume on this contract is 5,992 versus open interest of 1,171, so we know that the volume primarily represents fresh positioning. The bulk of the transactions consisted of various large to mid-sized blocks (1,710, 429, 429, 429, 428, 428, etc.) that were bought around the same time at the ask price of $1.75 each, which suggests bullish intent.

Shares of Abbott Laboratories Inc. (ABT - $8.83 to $111.90) are gapping down to a 52-week low this morning after the medical device maker reported Q4 adjusted earnings of $1.50 (in-line with estimates) on Q4 revenue that increased 3% YoY to $11.50B (below the $11.80B expected). Looking ahead, the company said that 2026 adjusted EPS is expected to come in a range of $5.55-5.80 versus the $5.68 FactSet consensus estimate. Puts are slightly outnumbering calls with the January 23^rd 105.00 put leading the way (volume is 3,881).

Also trading to the downside today is GE Aerospace Inc. (GE - $19.80 to $298.70) even though the maker of commercial and defense aircraft engines beat quarterly estimates. GE reported Q4 adjusted EPS of $1.57 ($0.14 beat) on Q4 sales that increased 20.14% YoY to $12.717B (above the $11.177B expected). Looking ahead, the company said that adjusted EPS is expected to come in a range of $7.10-7.40 versus the $7.14 FactSet consensus estimate. Calls are outnumbering puts ~3:2 with the February 20^th 340.00 call being the highest volume contract (volume is 3,206).

New 52-week lows (27 new lows today): American International Group Inc. (AIG - $5.60 to $290.52), McCormick & Company (MKC - $4.27 to $62.29), SAP AG (SAP - $1.43 to $223.67)

Some unusual put activity (~110:1 puts over calls) is being seen in UniFirst Corp. (UNF + $1.62 to $207.95) which is primarily being driven by a couple of large blocks that simultaneously traded on the February 20^th expiration earlier this morning:

• 190.00 put (open interest is 18): A 2,500 contract block was bought for $4.95 when the bid/ask spread was $1.05 x $5.00.
• 170.00 put (open interest is 87): A 2,500 contract block was sold at the bid price of $0.20.

We know that these blocks are new positions based on the respective open interest figures, and it appears that a $20.00-wide bear put spread was established for a net debit of $4.75 (x 2,500 contract x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that UNF will close below the break-even price of $185.25 at expiration. 

Helix Energy Solutions Group Inc. (HLX + $0.15 to $7.68): Option volume is running at ~650x the daily average on this offshore energy services company as option traders primarily target the June 18^th 10.00 call. Volume on this contract is 8,767 versus open interest of 256, 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 $0.45-$0.60 each (including a 2,500 contract block that was bought at the ask price of $0.45), which suggests bullish intent.

Maximus Inc. (MMS + $0.63 to $98.56): Option volume is running at ~108x the daily average on this provider of government services which is primarily driven by a 2,500 contract block that was bought on the February 20^th 105.00 call for $2.50 when the bid/ask spread was $0.05 x $4.00 (open interest is 1). 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.

Booz Allen Hamilton Holding Corp. (BAH + $0.25 to $95.82): Option volume is running at ~29x the daily average on this provider of IT solutions which is primarily being driven by a couple of large blocks that simultaneously traded on the February 20^th expiration earlier this morning:

• 90.00 put (open interest is 113): A 2,500 contract block was bought for $2.78 when the bid/ask spread was $2.00 x $3.00.
• 80.00 put (open interest is 482): A 2,500 contract block was sold for $0.78 when the bid/ask spread was $0.75 x $0.90.

We know that these blocks are new positions based on the respective open interest figures, and it appears that a $10.00-wide bear put spread was established for a net debit of $2.00 (x 2,500 contract x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that BAH will close below the break-even price of $88.00 at expiration. 

The Cboe Volatility Index (VIX - 1.44 to 15.46) has been in negative territory all day today (the intraday range is 15.45-16.67), as equity markets are higher across the board around the midday mark (DJI + 467, SPX + 51, $COMP + 239). VIX option volume is above average today at 452,883 contracts, and calls are outnumbering put better than 3:1 s so far today.