Today's Options Market Update

Stocks Take Breather After Rally, Focused on Jobs

January 7, 2026 Joe Mazzola

After yesterday's record highs, stocks eased early today as investors monitored geopolitics and turned to jobs data. ADP employment was light at 41,000, and job openings are next.

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The jobs data parade starts today, culminating in Friday's critical December nonfarm payrolls report expected to show another lackluster gain. Major indexes, some of which posted record highs yesterday, edged lower as geopolitical tensions simmered following weekend events in Venezuela and concerns about U.S. intentions in Greenland.

The ADP employment report for December released early today showed 41,000 private sector jobs created, below consensus of 45,000. The growth was completely in services—with goods-producing jobs down—and Treasury yields dropped on the news. Estimates for nonfarm payrolls are near 55,000, with unemployment steady at 4.6% and wages up 0.3%. The numbers may matter more than usual after Federal Reserve Chairman Jerome Powell urged caution last month about cutting rates further. "The strength or weakness of the labor market should be the key driver of Fed policy going forward," said Collin Martin, head of fixed income research and strategy, Schwab Center for Financial Research (SCFR). "Weaker-than-expected labor market data would likely result in more Fed rate cuts than the one to two cuts we're projecting this year."

On Wall Street Tuesday, all major indexes turned green. The Dow Jones Industrial Average and the S&P 500 index marched to new all-time highs amid chip market enthusiasm, possibly sparked by news flow from a closely watched technology conference. Looking ahead, Friday might bring a tariff ruling from the Supreme Court, though that's not certain. "It's a decision that could have far-reaching implications for one of the president's key economic policies, global trade relations, and companies of all types," said Michael Townsend, managing director of legislative and regulatory affairs, Schwab.

Source: Schwab Center for Financial Research

Morning Rush

The 10-year U.S. Treasury yield (TNX) is down 4 bps to 4.14%.

The U.S. Dollar Index ($DXY) is slightly higher by 0.06% at 98.64.

The CBOE Volatility Index^® (VIX) is up 2.17% to 15.08.

WTI Crude Oil (/CL) is lower by 2.12% to $55.92/barrel.

Bitcoin (BTC) is lower by 1.47% to $91,435.

Ethereum (ETH) is down by 3.16% at $3,154.

Today's Bullish Activity

Shares of Ventyx Biosciences (VTYX + $3.70 to $13.75) are up over 35.00% in morning trading, after it was announced that Eli Lilly was in advanced talks to acquire the company for more than $1 billion, first reported by The Wall Street Journal. Per the report, Lilly could pay as much $14 a share in cash for Ventyx. Ventyx specializes in developing pills to treat inflammatory bowel diseases like Crohn's and rheumatoid arthritis. These pills have also shown promise treating neurodegenerative conditions like Parkinson's, as well as heart-related conditions. One of Ventyx's drug candidates is currently in midstage testing for the treatment of cardiovascular disease associated with obesity.

Option trading in VTYX currently stands at 30,945 contracts, 15x the average daily volume with calls outpacing puts 3:1. Leading the way are the following trades, expirations, and strikes:

March 20th, 2026, 15.00 call accounted for 8,098 contracts; open interest is 387 contracts.
January 16th, 2026, 15.00 call accounted for 7,823 contracts; open interest is 90 contracts.
January 16th, 2026, 12.50 put accounted for 4,611 contracts; open interest is 382contracts.

New 52-week highs (232 new highs today): Intel Corp. (INTC + $2.64 to $42.68), Compass Inc. (COMP + $1.53 to $12.36), Monte Rosa Therapeutics (GLUE + $7.78 to $23.79)

Notable Call Activity

Unusual call activity is noted today in Trilogy Metals Inc. (TMQ + $0.11 to $5.17), as call volume currently stands at 10,490 contracts, 40x the average daily volume and 20x the put volume. Over 3/4 of today's activity occurred in the January 16th, 2026, expiration month, with the 5.50 strike calls generating the most interest. Traders have purchased over 7,000 of the 5.50 strike calls through multiple block trades, paying an average price of $0.30 when the bid/ask was $0.25 x $0.30. These appear to be new positions, given the open interest of 410 contracts (suggesting bullish intent). Shares of TMQ have shed over 50% in value in the past three months after setting a 52-week high price of $11.29.

Another name exhibiting unusual activity today is Vertical Aerospace Ltd. (EVTL + $0.27 to $6.41), as call volume has spiked to 20,943 contracts in morning trading, 200x the average volume and 300x the put volume. Traders are using calendar spreads to roll long call positions out from the January 16th to the February 20th, 2026, expirations. Traders used a large block order of 10,000 spreads to roll their long 7.50 calls from January to February, paying $0.45 for the additional 35 days. This trade is bullish in nature, as the trade extends the duration for a debit. Shares of EVTL are up 23% year-to-date. This trade may be assuming that bullish run is just beginning.

Today's Bearish Activity

Shares of Albertsons Corp. (ACI - $0.80 to $16.31) are up around 5.00% today, trading at a 52-week low, after the grocer lowered the top-end of its annual forecast for identical sales, stating the Inflation Reduction Act could be a major headwind next fiscal year. Albertsons in now forecasting adjusted EPS of $2.08 to $2.16, below the mid-point of analyst estimates for $2.14, per Bloomberg. The company is also expected identical sales +2.2% to +2.5%, also below estimates for +2.49% and adjusted EBITDA of $3.83 billion to $3.88 billion.

Per the report, the reduced current year outlook reflects a 16 to 18 basis point annual impact (or a 65 to 70 basis point impact for the fourth quarter) related to the Inflation Reduction Act's Medicare Drug Price Negotiation Program which took effect on Jan. 1, 2026. According to the company, this reduces consumer prices and supplier costs on certain branded drugs and will result in lower reported pharmacy sales. On its call, Albertsons said there will be a "significant headwind" next year of as much as 125 basis points to sales from the Inflation Act.

Option trading in ACI currently stands at 6,057 contracts in morning trading, on pace for 3x the daily average, with calls outpacing puts 2:1. Leading the way are the following trades, expirations, and strikes:

January 16th, 2026, 17.00 call accounted for 462 contracts; open interest is 1,151 contracts.
January 9th, 2026, 16.50 put accounted for 461 contracts; open interest is 680 contracts
January 9th, 2026, 16.50 call accounted for 344 contracts; open interest is four contracts.

New 52-week lows (53 new lows today): Albertsons Corp. (ACI - $0.80 to $16.31), Alight Inc. (ALIT - $0.13 to $1.77), Apogee Enterprises (APOG - $4.78 to $32.51)

Notable Put Activity

There is unusual put activity today in Crown Holding Inc. (CCK - $2.79 to $101.21). This activity equates to over 6,467 put contracts, 1000x average daily put volume and 600x today's call volume. Nearly all the volume can be attributed to a single large block order in the February 20th, 2026, expiration. Traders sold 6,438 of the 90.00 strike puts for $0.76 when the bid/ask was $0.25 x $2.25. There were only three contracts of open interest, so we know this represents new positioning (suggesting neutral to bullish intent). The 90.00 strike selection would align with the near-term low price for CCK shares hit back in mid-October.

Unusual activity has also been detected in CRH Public Limited Corp. (CRH - $4.57 to $124.30), as put volume stands at 3,693 contracts, 40x average volume and 2x call volume, in morning trading. Much of the volume can be attributed to a ratio vertical put spread that was purchased in the March 20th, 2026, expiration month. Traders bought 1,500 of the March 120.00 strike puts and sold 1,875 of the March 105.00 strike puts. These appear to be new positions, given the collective open interest of 550 contracts (suggesting bearish intent). The strike selections are interesting as they represent both the 50-day ($120.08) and 200-day ($105.53) Simple Moving Averages.

Gauging Volatility

The Cboe Volatility Index (VIX + 0.33 to 15.08) is up by 2.17%, as equity markets are mixed in morning trading (DJI - 251, SPX + 5, COMPX + 132). VIX movement has occurred within a narrow range today (the intraday range is 14.57 to 15.42). The highest volume contract is currently the February 18th, 2026, 25.00 call (volume is 44,815 vs. open interest of 80,103).

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