Today's Options Market Update

Stocks Down, VIX Up as Investor Sentiment Remains Cautious

November 18, 2025 Nathan Peterson

Yesterday’s pullback extends into today as investors remain in “risk off” mode ahead of Nvidia’s earnings report tomorrow after the bell.

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Struggles spilled into a fourth straight session with AI stocks and cryptocurrencies shedding weight as volatility hit one-month highs. Traders appear to be taking risk off the table ahead of key data and earnings releases, including Nvidia (NVDA) tomorrow and the September jobs report Thursday. Adding to market misery, Home Depot (HD) checked in this morning with earnings that disappointed.

As Home Depot and other retailers report this week, a key event might be Friday's November University of Michigan Consumer Sentiment. That's not to give short shrift to Thursday morning's September nonfarm payrolls report, expected to show around 50,000 jobs added. But government data are dated, including today's month-old weekly jobless claims. "It's still going to take time to get a firm grip on what's happening," said Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research (SCFR). "There's a high likelihood that there will be significant revisions."

November's washout worsened Monday as the S&P 500 index closed at one-month lows. If the month ended today, it would be the first negative one since April, dragged by an 8% drop in semiconductor stocks and a 17% decline in bitcoin (/BTC) as air hisses out of the speculative tire. Nvidia's valuation is about 7% of the entire S&P 500 index, so whichever way its shares move could have a big impact. Nvidia earnings share the spotlight Wednesday afternoon with Federal Reserve minutes, and the market's recent uncertainty coincides with falling rate cut odds. Chances of a cut next month were about 47% as of early Tuesday, according to the CME FedWatch Tool. "We are not expecting a cut," Jones said.

Source: Schwab Center for Financial Research

Morning Rush

The 10-year U.S. Treasury yield (TNX) is lower by ~3 basis points to 4.104%.

The U.S. Dollar Index ($DXY) is slightly lower to 99.56.

WTI Crude Oil (/CL) is down ~0.25% to $59.76/barrel.

Gold prices have traded in a range of $3,997.40-$4,082.30 and were last seen trading lower by ~0.40% to $4,058.30/oz.

Natural Gas prices have traded in a range of $4.236-4.372 today and were last seen trading lower by 2.25% to $4.263.

Bitcoin (BTC) is higher by ~0.76% to $92,797.84 today.

Today's Bullish Activity

Gapping up to a three-year high this morning is Medtronic PLC (MDT + $4.85 to $101.13) after the medical device maker reported fiscal Q2 adjusted earnings of $1.36 per share ($0.05 beat) on Q2 revenue of $8.961B (above the $8.865B consensus estimate). Looking ahead, the company raised the lower end of its full-year 2026 adjusted EPS guidance to $5.62-5.66 (from $5.60-5.66) and increased its FY26 organic revenue growth guidance to ~5.5% (from ~5%). Calls are outnumbering puts ~3:1 with the November 21^st 101.00 call seeing the most action from traders (volume is 1,741).

Also trading to the upside this morning is Amer Sports Inc. (AS + $2.43 to $33.19) after the sports apparel, equipment and footwear retailer reported Q3 adjusted earnings of $0.33 per share ($0.08 beat) on Q3 revenue that increased 30% YoY to $1.76B (above the $1.72B consensus estimate). The company also raised its full-year 2025 GAAP EPS guidance to a range of $0.88-0.92 (from $0.77-0.82) and FY25 revenue guidance to a range of $6.375-6.427B (from $6.22-6.27B). Calls are outnumbering puts nearly 3:1 with the November 21^st 32.50 call leading the way (volume is 7,519).

New 52-week highs (25 new highs today): Eli Lilly & Co. (LLY + $2.21 to $1,023.91), Jazz Pharmaceuticals PLC (JAZZ + $3.47 to $173.56), Welltower Inc. (WELL + $1.45 to $198.72)

Notable Call Activity

Some unusual call activity (~18:1 calls over puts) is being seen in Marathon Petroleum Corp. (MPC + $0.76 to $196.73) as option traders primarily target the November 21^st 210.00 call. Volume on this contract is 3,507 versus open interest of 830, so we know that the volume primarily represents fresh positioning. The bulk of the transactions consisted of various-sized blocks that were bought at various times for between $0.15-$0.25 each, which suggests bullish intent.

Today's Bearish Activity

Shares of Dow-component Home Depot Inc. (HD - $12.25 to $345.76) are falling to a seven-month low this morning after the home improvement retailer reported Q3 adjusted earnings of $3.74 per share ($0.10 miss) on revenue that of $41.35B (above the $41.15B FactSet consensus estimate). Home Depot also lowered its FY25 adjusted EPS forecast to $14.48 from $14.94 (and below the $14.99 expected) but raised its FY25 sales guidance to $164.299B from $163.98B (vs. the $164.742B consensus estimate). Puts are slightly outnumbering calls, but the November 21^st 360.00 call is the highest volume contract (volume is 1,786).

Also trading to the downside this morning is Honeywell International Inc. (HON - $4.93 to $191.15) after Bank of America (BofA) “double downgraded” the aerospace and automation technology provider to “Underperform” from “Buy” and cut their price target on the stock to $205.00 from $265.00. BofA analyst Andrew Obin believes the path forward for HON could be “challenging”, referring to the company’s upcoming split into aerospace and automation, and sees limited 2026 earnings growth. Calls are outpacing puts nearly 2:1, but the November 21^st 190.00 put is garnering the most attention from traders (volume is 590).

New 52-week lows (340 new lows today): Automatic Data Processing Inc. (ADP - $1.70 to $249.20), Cable One Inc. (CABO - $4.01 to $103.01), Duolingo Inc. (DUOL - $4.74 to $173.53)

Notable Put Activity

Some unusual put activity (~500:1 puts over calls) is being seen in ResMed Inc. (RMD + $2.18 to $246.89) which is primarily being driven by two large blocks that simultaneously traded on the December 19^thexpiration earlier this morning:

240.00 put (open interest is 78): A 3,100 contract block traded for $5.70, directly in the middle of the $5.30 x $6.10 bid/ask spread.
220.00 put (open interest is 114): A 3,100 contract block was sold for $1.65 when the bid/ask spread was $1.50 x $1.85.

We know that both these blocks are new positions based on the respective open interest figures and it appears (since the block trade on the 220 put was sold) that a $20.00-wide bear put spread was established for a net debit of $4.05 (x 3,100 contracts x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that RMD will close below the break-even price of $235.95 at expiration.

Volume Signals

Hexcel Corp. (HXL + $1.70 to $71.61): Option volume is running at ~123x the daily average on this aerospace parts maker as option traders primarily target the March 2026 85.00 call. Volume on this contract is 1,559 versus open interest of 178, 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 $1.55-1.60 each, which suggests bullish intent.

Global-E Online Ltd. (GLBE + $0.90 to $36.03): Option volume is running at ~23x the daily average on this e-commerce company which is primarily being driven by two large blocks that simultaneously traded on the November 21^stexpiration earlier this morning:

40.00 call (open interest is 2,915): A 3,000 contract block was bought at the ask price of $1.35.
45.00 call (open interest is 94): A 3,000 contract block was sold for $0.37 when the bid/ask spread was $0.20 x $0.65.

We know that both these blocks are new positions based on the respective open interest figures and it appears a $5.00-wide bull call spread was established for a net debit of $0.98 (x 3,000 contracts x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that GLBE will close above the break-even price of $40.98 at expiration. This appears to be a bullish earnings play as GLBE is slated to report Q3 earnings tomorrow before the market opens.

Viking Holdings Ltd. (VIK + $0.92 to $58.18): Option volume is running at ~10x the daily average on this cruise liner as option traders primarily target the November 21^st 55.00 put. Volume on this contract is 2,182 versus open interest of 730, 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 $1.30-1.35 each, which suggests bearish intent.

Gauging Volatility

The Cboe Volatility Index (VIX + 1.76 to 24.14) has been in positive territory all day today (intraday range is 23.54-25.84), as equity markets are lower around the midday mark (DJI - 472, SPX – 48, COMP - 246). VIX option volume is heavy today at 1,441,344 contracts, and the activity has been call-biased as the volume put/call ratio is roughly 3:2.

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