Today's Options Market Update

Stocks took another dive early Monday after crude oil prices surged above $100 per barrel for the first time since 2022 and market volatility spiked. Hedging activity ramped up, sending the Cboe Volatility Index (VIX) above 30 for the first time since last April's tariff-fueled leap, and sectors like industrials and financials closely tied to economic growth led early selling. Rising VIX suggests choppier trading ahead, and there are signs that hedge funds may be betting on further pressure as conflict continued and Gulf countries reportedly reduced oil production.

Beyond crude and VIX, the week ahead includes Wednesday's February Consumer Price Index and Friday's January Personal Consumption Expenditures, or PCE, prices—the Fed's favored inflation metric. None of these reports, along with Friday's job openings data, will include any impact from the war. On the corporate side, earnings are light this week, but Oracle (ORCL) tomorrow afternoon could serve as a tech barometer, and Adobe (ADBE) offers another software check Thursday.

On Friday, major indexes dove after crude oil spiked 35% last week and the government reported a surprise February U.S. jobs decline of 92,000. While the data hurt markets Friday, crude and war remain the primary drivers. A test of the November S&P 500 Index (SPX) low near 6,550 seems probable, which would mean falling below the 200-day moving average of 6,582, a line the index hasn't dropped under since May. "Any stability that we might find in oil prices lends stability to the equity market," said Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research (SCFR), in a podcast Friday. "In the meantime, we're seeing incredible swings."

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is higher by ~1 basis points to 4.144%.

The U.S. Dollar Index ($DXY) is higher by 0.20 to 99.18.

WTI Crude Oil (/CL) is higher by 10.59% to $100.53/barrel.

Gold prices have traded in a range of $5,021.20-5,210.40 and were last seen trading lower by ~1.04% to $5,105.00/oz.

Natural Gas prices for March futures have traded in a range of $3.211-3.494 today and were last seen trading higher by 1.26% to $3.226.

Bitcoin (BTC) is higher by ~4.91% over the last 24 hours to $69,216.49 today.

Shares of Hims & Hers Health Inc. (HIMS + $6.55 to $22.29) are moving higher this morning after Bloomberg News reported that the online pharmacy has formed a partnership with Novo Nordisk, ending a drawn-out legal dispute between the two companies. Under the agreement, Hims & Hers will offer access to Novo Nordisk’s weight loss drug (Wegovy) in injectable and pill forms and will no longer advertise compounded versions of GLP-1 drugs. Novo Nordisk dropped its patent infringement lawsuit against HIMS. Calls are outnumbering puts better than 2:1 with the March 13^th 25.00 call being the highest volume contract (volume is 15,695).

Also trading to the upside this morning is AutoZone Inc. (AZO + $51.24 to $3,692.53) after Argus upgraded the auto parts retailer to “Buy” from “Hold” and put a $4,325.00 price target on the stock. Analysts at Argus see AZO returning to year-over-year profit growth starting with the third fiscal quarter of 2026. Calls are outpacing puts ~3:2 with the April 17^th 4300.00 call being the highest volume contract (volume is 79).

New 52-week highs (66 new highs today): BP PLC (BP + $0.33 to $40.77), Intrepid Potash Inc. (IPI + $1.85 to $44.38), Ovintiv Inc. (OVV + $1.85 to $54.10)

Some unusual call activity (~5:1 calls over puts) is being seen in DICK’S Sporting Goods Inc. (DKS - $5.35 to $191.90) which is primarily driven by a 1,390 contract block that was bought on the March 20^th 200.00 call for $7.50 when the bid/ask spread was $6.50 x $7.70 (open interest is 567). 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.

Shares of ArcelorMittal S.A. (MT - $2.37 to $53.03) are moving lower this morning after JPMorgan downgraded the steel maker to “Underweight” from “Overweight” and cut their price target on the stock to €40.00 from €53.50. Analysts at JPMorgan said that the market is not adequately discounting the potential negative impact from higher global energy prices. Calls are outnumbering puts ~3:1 with the April 17^th 55.00 call seeing the most action from traders (volume is 184).

Also trading to the downside today is Marriott Vacations Worldwide Corp.  (VAC - $2.90 to $67.60) after Citizens downgraded the resort rental and property management company to “Market Perform” from “Market Outperform” and dropped their price target on the stock to $60.00 from $115.00. Analysts at Citizens cited concerns around management-level changes following the departure of former CEO John Geller. Calls and puts are trading roughly even with the March 20^th 90.00 put being the highest volume contract (volume is 80).

New 52-week lows (215 new lows today): Builders FirstSource Inc. (BLDR - $1.31 to $91.81), Eagle Materials Inc. (EXP - $-4.26 to $192.53), Helen of Troy Ltd. (HELE - $0.69 to $15.78)

Some unusual put activity (~30:1 puts over calls) is being seen in Dianthus Therapeutics Inc. (DNTH + $17.01 to $82.21) which is primarily driven by a 1,000 contract block that was bought on the May 15^th 70.00 put for $3.90 when the bid/ask spread was $2.20 x $4.30 (open interest is 14). 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. Shares of DNTH are trading ~26% higher this morning after the biotech firm said that it has reached an early decision to move forward with its Phase 3 trial of the company’s experimental Chronic Inflammatory Demyelinating Polyneuropathy drug.

Dauch Corp. (DCH - $0.14 to $5.43): Option volume is running at ~77x the daily average on this auto parts maker which is primarily driven by a 7,000 contract block that was bought on the July 17^th 7.00 call for $0.45 when the bid/ask spread was $0.25 x $0.55 (open interest is 5,049). 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.

Builders FirstSource Inc. (BLDR - $1.57 to $91.55): Option volume is running at ~6x the daily average on this building products maker which is primarily being driven by a couple of large blocks that simultaneously traded on the June 18^th expiration earlier this morning:

• 110.00 call (open interest is 34): A 2,000 contract block traded for $4.25 when the bid/ask spread was $3.50 x $4.60.
• 130.00 call (open interest is 145): A 2,000 contract block was bought at the ask price of $1.55.

We know that these blocks are new positions based on the respective open interest figures, and it appears (since the trade on the 130.00 call took place at the ask price) that a $20.00-wide bear call spread was established for a net credit of $2.70 (x 2,000 contracts x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that BLDR will close below $120.00 at expiration.

Petroleo Brasileiro S.A. (PBR/A + $0.75 to $16.87): Option volume is running at ~5x the daily average on this oil & gas producer which is primarily driven by a 1,500 contract block that was bought on the January 2028 20.00 call at the ask price of $1.55 (open interest is 824). 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.

The Cboe Volatility Index (VIX - 1.92 to 27.57) has been on both sides of the unchanged line today (the intraday range is 27.42-35.30), as equity markets are lower across the board around the midday mark (DJI – 409, SPX - 30, $COMP - 12). VIX option volume is above average today at 956,933 contracts, and calls are outnumbering puts better than 2:1.