Today's Options Market Update

As the lights turned back on in D.C., investors pondered results from Walt Disney (DIS) and Cisco (CSCO) and major indexes slipped amid rising volatility and yields. This week has seen a rotation out of big tech names into less highly valued sectors like health care, materials and financials, a trend that continued this morning with several Magnificent Seven stocks starting on their back feet, including Nvidia (NVDA).

Investors might have to wait until next week to see a trickle of government data, which won't come until the official reopening and may be less than complete. The September jobs report could be an exception since it was collected before the shutdown. "Economists think that it will be the end of 2025 or early 2026 before they start to feel confident again in government data, given the 43-day gap in collecting and analyzing information on jobs, inflation, and other key metrics," said Michael Townsend, managing director of legislative and regulatory affairs at Schwab. "Upcoming reports, if they come out at all, are likely to be based on estimates or partial information, producing a cloudy picture of the economy."

Rate cut odds for December sank to 55% today, down from 65% earlier this week, according to the CME FedWatch Tool, after Boston Fed President Susan Collins  became the latest policy maker to sound skeptical. Despite that and worries about the shutdown's impact on fourth quarter growth, major indexes mostly rose Wednesday. The S&P 500 index managed a fourth consecutive gain and the Dow Jones Industrial Average maintained momentum to top 48,000 for the first time, but the tech-heavy Nasdaq kept sliding.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is slightly lower to 4.094%.

The U.S. Dollar Index ($DXY) is lower by 0.29 to 99.19.

WTI Crude Oil (/CL) is up ~0.92% to $59.03/barrel.

Gold prices have traded in a range of $4,183.20-$4,250.00 and were last seen trading lower by ~0.14% to $4,207.50/oz.

Natural Gas prices have traded in a range of $4.454-4.622 today and were last seen trading higher by 1.61% to $4.606.

Bitcoin (BTC) is higher by ~0.70% to $102,371.40 today.

Gapping up to the highest levels since 2000 this morning is Cisco Systems Inc. (CSCO + $3.33 to $77.29) after the networking giant reported adjusted earnings of $1.00 per share ($0.02 beat) on revenue that increased 7.53% year-over-year (YoY) to $14.883B (above the $14.766BB FactSet consensus estimate). Cisco also issued better-than-expected guidance as Q2 adjusted EPS is expected to come in a range of $1.01-1.03 on Q2 revenue that is expected to come in a range of $15.00-15.20B versus the respective $0.99 & $14.627B FactSet consensus estimates. Multiple analysts raised their price target on the stock following the report. Calls are outnumbering puts better than 2:1 with the November 14^th 80.00 call seeing the most action from traders (volume is 11,471).

Also trading to the upside this morning is Dillard’s Inc. (DDS + $118.90 to $724.86) after the retail department store operator reported Q3 earnings of $8.31 per share ($2.05 beat) on Q3 revenue that increased 2.3% YoY to $1.469B (above the $1.438B FactSet consensus estimate). Total retail sales increased 3% for the 13-week period ended November 1, 2025. Note: There are no options listed on this security.

New 52-week highs (81 new highs today): Albemarle Corp. (ALB + $8.52 to $118.84), Gilead Sciences Inc. (GILD + $2.92 to $126.32), Johnson & Johnson (JNJ + $1.10 to $195.49)

Some unusual call activity (~4:1 calls over puts) is being seen in packaging solutions provider Sealed Air Corp. (SEE + $7.07 to $43.45) as option traders primarily target the December 19^th 47.50 call. Volume on this contract is 2,104 versus open interest of 0, so we know that all the volume represents fresh positioning (assuming no day trades). The bulk of the transactions consisted of various-sized blocks that were bought at various times for between $0.70-$1.05 each (including a 1,000 contract block that was bought at the ask price of $1.05), which suggests bullish intent. Shares of SEE are trading ~19% higher today on a WSJ report that Clayton Dubilier & Rice is in discussions to take the company private, noting that it remains possible that talks could fall apart.

Shares of Walt Disney Company (DIS - $9.71 to $106.94) are gapping down to a six-month low this morning after the entertainment giant reported Q4 adjusted earnings of $1.11 per share ($0.06 beat) on revenue that decreased 0.49% YoY to $22.46B (below the $22.749B FactSet consensus estimate). The company said that fiscal-year 2027 adjusted EPS is expected to increase double digits versus FY26. Calls are outnumbering puts ~4:3 with the December 19^th 110.00 call leading the way (volume is 6,271).

Also trading to the downside this morning is Dollar Tree Inc. (DLTR - $2.47 to $103.71) after Goldman Sachs downgraded the discount retailer to “Sell” from “Buy” and cut their price target on the stock to $103.00 from $133.00. Analysts at Goldman Sachs cited concerns around the lower income consumer, declining consumer perception on price and value and Goldman’s preference for other discounters with improving value propositions and strong merchandising, such as OLLI and FIVE. Option volume is relatively light at the time of this writing with the December 14^th 102.00 put being the highest volume contract (volume is 69).

New 52-week lows (62 new lows today): Molina Healthcare Inc. (MOH - $0.53 to $140.50), Paychex Inc. (PAYX + $0.59 to $111.67), Perrigo Company (PRGO - $0.06 to $14.10)

Some unusual put activity (~50:1 puts over calls) is being seen in Blue Owl Capital Inc. (OWL - $0.24 to $14.84) which is primarily being driven by activity on the December 19^th 16.00 put. Volume on this contract is 15,090 (vs. open interest of 4,331), which nearly entirely consisted of several large blocks (10,500, 1,500, 1,500 & 1,500) that were bought around the same time for $1.36 when the bid/ask spread was $1.30 x $1.40, which suggests bearish intent.

Nexa Resources S.A. (NEXA + $0.22 to $6.38): Option volume is running at ~105x the daily average on this zinc mining and smelting company as option traders primarily target the November 21^st 7.50 call. Volume on this contract is 9,289 versus open interest of 26, so it’s likely that nearly all the volume represents new positioning. The bulk of the transactions consisted of various-sized blocks that were bought at various times for between $0.08-$0.25 each, which suggests bullish intent.

Globant S.A. (GLOB + $2.38 to $64.15): Option volume is running at ~28x the daily average on this IT services provider which is primarily being driven by three large blocks that simultaneously traded on the November 21^st expiration earlier this morning:

• 80.00 call (open interest is 2,798): A 2,000 contract block was sold for $0.99 when the bid/ask spread was $0.90 x $1.30.
• 60.00 put (open interest is 682): A 2,000 contract block was bought for $4.04 when the bid/ask spread was $3.70 x $4.20.
• 50.00 put (open interest is 191): A 2,000 contract block was sold for $0.95 when the bid/ask spread was $0.85 x $1.25.

Assuming all these blocks are opening transactions, it appears that a (bearish) risk reversal put spread was established for a net debit of $2.10 (x 2,000 contracts x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that GLOB will close below the break-even price of $57.90 at expiration. This appears to be a bearish earnings play as GLOB is slated to report Q3 earnings after the bell today.

Viking Holdings Ltd. (VIK - $0.87 to $60.12): Option volume is running at ~16x the daily average on this cruise liner as option traders primarily target the December 19^th 60.00 put. Volume on this contract is 2,016 versus open interest of 68, so it’s likely that nearly all the volume represents new positioning. The bulk of the transactions consisted of various-sized blocks that were bought at various times at the ask price of $2.75 each, which suggests bearish intent.

The Cboe Volatility Index (VIX + 1.65 to 19.16) has been on both sides of the unchanged line today (intraday range is 17.51-19.51), as equity markets are lower across the board around the midday mark (DJI - 416, SPX - 75, COMP - 411). VIX option volume is above average today at 569,438 contracts, and the activity has been call-biased, with calls outpacing puts ~3:2.