Today's Options Market Update

A wild but ultimately positive year on Wall Street ends today with the S&P 500 index tracking for 17% gains in 2025 and the Nasdaq 100 (NDX) up more than 21%. Today is a normal trading session for stocks and so is Friday but tomorrow is closed for New Year's Day. Treasuries close early today at 2 p.m. ET. All this means the low volume, featureless trading seen earlier this week might continue, with stocks down again ahead of the open amid a light news flow. Weekly initial jobless claims of 199,000 and continuing claims of 1.866 million released this morning both were below expectations.

Minutes yesterday from the last Federal Reserve meeting showed officials focused on stubborn inflation brought about partly by tariffs, along with rising unemployment. Still, they expect the pace of economic growth to accelerate in 2026 thanks to support from fiscal policy, easing regulations, and "somewhat favorable" financial market conditions. Even some who voted in favor of a rate cut indicated their decision was "finely balanced" and they could have supported leaving rates unchanged. Looking ahead, participants said they could support future rate cuts if inflation falls as expected, while some thought rates shouldn't be lowered again for a while to provide time for assessing the lagged effect of lower rates on the economy.

Wall Street's slow grind lower continued yesterday, with major indexes losing ground for the third day in a row but finishing not far from all-time highs posted last Thursday. The S&P 500 index will post its third straight year of double-digit gains for the first time since a stretch from 2019 through 2021. Sector-wise, the biggest gainers this year are communication services, info tech, and industrials, while real estate lags with just a 0.6% rise. Every sector, however, is likely to finish 2025 in the green for the first time since 2021, according to S&P Global. It's a very different outcome than investors might have imagined back in April when stocks plunged on tariff fears, though their delayed impact might still be felt.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is up 3 bps to 4.15%.

The U.S. Dollar Index ($DXY) is higher by 0.15% at 98.39.

The CBOE Volatility Index^® (VIX) is up by 1.74% to 14.58.

WTI Crude Oil (/CL) is lower by 0.50% to $57.65/barrel.

Bitcoin (BTC) is falling 0.15% to $88,130.

Ethereum (ETH) is rising by 0.67% at $2,992.

Shares of Vanda Pharmaceuticals (VNDA + $2.21 to $9.24) are up over 30.00% in morning trading, to a 52-week high, after the biopharmaceutical company announced in a report that the U.S. FDA has approved its drug Nereus (tradipitant) for the prevention of vomiting induced by motion. This approval marks the first new pharmacologic treatment in motion sickness in over four decades. Per the report, motion sickness affects approximately 25–30% of US adults and up to 33% of adults globally. Vanda believes the drug could be launched for consumer use within the next few months.

Jefferies' analyst Andrew Tsai raised his price target on Vanda Pharmaceuticals to $7.50 from $5 while maintaining a Hold rating on the shares following the FDA approval of Nereus. In his research note, Tsai noted he believes Nereus could become a $100M-$300M opportunity for Vanda.

Option trading in VNDA currently stands at 13,978 contracts, 40x the average daily volume with calls outpacing puts 15:1. Leading the way are the following trades, expirations, and strikes:

• January 16th, 2026, 8.00 call accounted for 3,784 contracts; open interest is 4,683 contracts.
• January 16th, 2026, 7.00 call accounted for 2,321 contracts; open interest is 5,144 contracts.
• January 16th, 2026, 9.00 call accounted for 1,240 contracts; open interest is 1,009 contracts.

New 52-week highs (93 new highs today): Vanda Pharmaceuticals (VNDA + $2.21 to $9.24), Viatris Inc. (VTRS+ $0.03 to $12.57), Axsome Therapeutics (ASXM + $31.41 to $180.20), FTAI Aviation Ltd. (FTAI + $0.79 to $198.47)

Unusual call activity is noted today in Voyager Technologies (VOYG - $0.26 to $26.03), as call volume currently stands at 1,996 contracts, 38x the average daily volume and 400x the put volume. Most of today's activity occurred in the January 16th, 2026, expiration month, specifically at the 31.00 strike where a large block order for 1,930 contracts transacted. Traders sold the 31.00 strike calls for a price of $0.37 when the bid/ask was $0.25 x $0.70. There were only 39 contracts of open interest, so we know this represents new positioning (suggesting neutral to bearish intent). Shares of VOYG are down nearly 65% year-to-date but have bounced $8.50 since late November when shares hit a 52-week low of $17.41.

Another name exhibiting unusual activity today is Encore Energy Corp. (EU + $0.17 to $2.55), as call volume has spiked to 20,151 contracts in morning trading, 11x the average volume and 7000x the put volume. Traders are active in the February 20th, 2026, expiration month, specifically at the 4.00 strike calls, where over 17,000 contracts have been traded. Most of the activity has been on the buy side, with a large block order of 13,500 contracts leading the way. Traders paid $0.10 for the 4.00 strike calls, the offer price at the time, for what appears to be new positions, as the open interest was only 427 contracts (suggesting bullish intent). Shares of EU are currently sitting at their 200-day SMA, stuck in a range between $2.50 to $3.00 since late October.

Shares of Corcept Therapeutics (CORT - $33.33 to $36.86) are down a staggering 47.00% today, shedding nearly $3.5 billion of market cap, after U.S. regulators rejected the company's drug to treat a form of high blood pressure. Per Bloomberg, the Food and Drug Administration could not arrive at a favorable benefit-risk assessment for the company's drug, relacorilant, without more evidence of its effectiveness. Corcept was studying the efficacy of its drug in treating patients with hypertension who have too much of the hormone cortisol in their bodies.

Analysts have offered mixed takes following the news with Truist Securities cutting its price target on CORT shares to $50 from $135 while Piper Sandler wrote it believed that the success on the primary endpoint and the cleaner safety profile "would carry relacorilant over the finish line," and reiterated its overweight rating on the stock.

Option trading in CORT currently stands at 23,355 contracts in morning trading, on pace for 8x the daily average, with puts outpacing calls 2:1. Leading the way are the following trades, expirations, and strikes:

• February 20th, 2026, 35.00 put accounted for 5,219 contracts; open interest is 6 contracts.
• January 16th, 2026, 50.00 put accounted for 2,385 contracts; open interest is 5,933 contracts.
• January 16th, 2026, 55.00 put accounted for 1,473 contracts; open interest is 5,575 contracts.

New 52-week lows (59 new lows today): AMC Entertainment Holdings (AMC - $0.03 to $1.58), Mara Holding Inc. (MARA - $0.13 to $9.21), Corcept Therapeutics (CORT - $33.33 to $36.86), Strategy Inc. (MSTR - $2.21 to $153.40)

There is unusual put activity today in Antero Resource Corp. (AR - $0.89 to $34.21). This activity equates to over 13,644 put contracts, 85x average daily put volume and 20x today's call volume. Nealy all the volume can be attributed to two block orders in the February 6th, 2026, expiration, specifically at the 30.00 strike put. Traders sold a total of 13,000 of the 30.00 strike puts for an average price of $0.22 when the bid/ask was $00.05 x $0.60. With only eight contracts of open interest, we know this was an opening position (suggesting neutral to bullish intent). Shares of AR are trading at their 50-day SMA and are up 17% from their 52-week low price of $29.10 set back in late October.

Unusual activity has also been detected in Duolingo Inc. (DUOL - $2.06 to $175.07), as put volume stands at 78,242 contracts in morning trading. Much of the volume can be attributed to a bear put vertical spread that traded in the February 20th, 2026, expiration month. Traders purchased 2,250 (4,500 total contracts) of the 170.00/160.00 put vertical spreads for a price of $4.15 through a single block trade. There was only a collective 381 contracts of open interest, so we know this represents new positioning (suggesting bearish intent). Shares of DUOL have been crushed as of late, down over 65% from their all-time high price of $544.93 set back in May. Traders may be betting on the downtrend to continue.

The Cboe Volatility Index (VIX + 0.25 to 14.58) is higher by 1.74%, as equity markets are lower in morning trading (DJI - 136, SPX - 17, COMPX - 46). VIX movement has occurred within a narrow range today (the intraday range is 14.48 to 14.92). The highest volume contract is currently the March 18th, 2026, 18.00 put (volume is 25,014 vs. open interest of 48,606).