Today's Options Market Update

The see-saw sank this morning following Wednesday's rally, hurt by a diving chip sector. Semiconductor firm Marvell (MRVL) cratered more than 17% despite earnings that topped analysts' estimates, pulling down Nvidia (NVDA) and other tech stocks. If market weakness continues, technical support might be tested at the 200-day S&P 500 index (SPX) moving average of 5,728.

Concerns about a flagging jobs market and tariffs added pressure, as did rising global bond yields. Friday's February nonfarm payrolls report looms and could give the Federal Reserve and investors new clarity as growth fears mount despite yesterday's delay in automobile tariffs that lifted stocks. Analysts expect 159,000 jobs added, with unemployment steady at 4%. Job cuts associated with government layoffs aren't likely to show up. Some economists have issued low-ball estimates for jobs growth of under 100,000.

Initial weekly jobless claims today fell to 221,000 from 242,000 the prior week, well below the Briefing.com consensus of 234,000 and some relief from the drumbeat of soft data, though continuing claims jumped to a nearly three-year high near 1.9 million.

The 10-year U.S. Treasury yield (TNX) is higher by ~2 basis points to 4.284%.

The U.S. Dollar Index ($DXY) is lower by 0.21 at 104.10.

WTI Crude Oil (/CL) is lower by 0.51% to $65.97/barrel.

Gold prices have traded in a range of $2,897.60-2,935.90 and were last seen trading higher by 0.04% to $2,927.20/oz.

Natural Gas prices have traded in a range of $4.254-4.471 and were last seen trading lower by 3.55% to $4.292.

Bitcoin (BTC) is down ~2.35% to $88,512.54.

Source: Schwab Center for Financial Research

Gapping up above the 200-day Simple Moving Average (SMA) this morning is Burlington Stores Inc. (BURL + $20.45 to $257.40) after the retailer reported Q4 earnings of $4.07 per share ($0.30 beat) on revenue that rose 4.8% year-over-year to $3.28B (above the $3.24B FactSet consensus estimate) as comparable same-store sales increased 6% year-over-year (above 0-2% guidance). Looking ahead, the company issued downside guidance as Q1 EPS is expected to come in a range of $1.30-1.45 on Q1 revenue that is expected to come in a range of ~$2.47-2.52B, which is below the respective $1.69 & $2.60M FactSet consensus estimates. Calls are outnumbering puts ~5:3 with the March 21^st 240.00 call being the highest volume contract (volume is 2,015).

Also moving higher this morning is Zscaler Inc. (ZS + $9.04 to $205.49) after the cybersecurity firm reported fiscal Q2 earnings of $0.78 per share ($0.09 beat) on revenue that increased 23.4% year-over-year to $647.9M (above the $634.38M expected). Regarding guidance, the company said that Q3 EPS is expected to be $0.75-0.76 (above the $0.73 expected) on Q3 revenue that is expected to come in a range of $665-667M (vs. the $666.11M FactSet consensus estimate). Calls are outnumbering puts ~3:2 with the March 7^th 215.00 call seeing the most action from traders (volume is 4,513).

New 52-week highs (36 new highs today): AutoZone Inc. (AZO + $18.98 to $3,574.86), Elbit Systems Inc. (ESLT + $0.96 to $353.00), Okta Inc. (OKTA - $3.32 to $112.99)

Some unusual call activity (~6:1 calls over puts) is being seen in VF Corp. (VFC - $2.01 to $21.44) which is primarily being driven by a couple of large blocks that were bought on the April 17^th 24.00 call – a 3,670 and a 2,760 contract block were bought around the same time for $1.50 when the bid/ask spread was $1.37 x $1.60 (open interest is 51). We know that both these blocks are new positions based on the open interest figure, and we can assume that the intent is bullish in nature since both trades took place above the midpoint of the bid/ask spread.

Gapping down to a two-year low this morning is MongoDB Inc. (MDB - $64.60 to $199.54) after the software company beat quarterly estimates but provided lackluster guidance last night after the bell. The company reported Q4 earnings of $1.28 per share ($0.62 beat) on revenue that rose 19.7% year-over-year to $548.4M (above the $520.65M FactSet consensus estimate). However, the company guided full-year 2026 (FY26) EPS to a range of $2.44-2.62 (vs. the $3.38 FactSet consensus estimate) and FY26 revenue to a range of $2.24-2.28B (below the $2.33B FactSet consensus estimate). Puts are outnumbering calls ~3:2 with the June 20^th 170.00 put being the highest volume contract (volume is 6,317).

Also trading to the downside this morning is Marvell Technology Inc. (MRVL - $16.63 to $73.51) after the electronics retailer beat quarterly estimates but failed to impress investors with guidance. For the fourth quarter MRVL reported Q4 earnings of $0.60 ($0.01 beat) on Q4 revenue that rose 27.4% year-over-year to $1.82B (above the $1.80B expected). Looking ahead, the company said that Q1 EPS is expected to come in a range of $0.56-0.66 (vs. the $0.60 expected) and Q1 revenue is expected to come in a range of $1.78-1.97B (vs. the $1.87B FactSet consensus estimate). Calls are outnumbering puts ~4:3 with the March 7^th 80.00 call leading the way (volume is 14,229).

New 52-week lows (147 new lows today): CSX Corp. (CSX - $0.22 to $30.70), Etsy Inc. (ETSY - $3.09 to $46.91), NetApp Inc. (NTAP - $2.82 to $92.05)

Some unusual put activity (~6:1 puts over calls) is being seen in Huntington Bancshares Inc. (HBAN - $0.32 to $15.06) as option traders primarily target the July 18^th 14.00 put. Volume on this contract is 2,007 versus open interest of 425, so we know that the activity primarily represents new positioning. The bulk of the transactions consisted of various-sized blocks that were bought around the same time at the ask price of $0.80 each, which suggests bearish intent.

Scholar Rock Holding Corp. (SRRK - $0.03 to $36.11): Option volume is running at ~32x the daily average on this biopharmaceutical company which is primarily being driven by two large blocks that simultaneously traded on the April 17^th expiration earlier this morning:

• 45.00 call (open interest is 106): A 1,000 contract block was bought at the ask price of $1.10.
• 60.00 call (open interest is 33): A 1,000 contract block was sold for $0.10 when the bid/ask spread was $0.00 x $0.75.

We know that both of these blocks are new positions based on the respective open interest figures, and it appears that a $15.00-wide bull call spread was established for a net debit of $1.00 (x 1,000 contract x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that SRRK will close above the break-even price of $46.00 at expiration.

Quest Diagnostics Inc. (DGX - $2.28 to $169.73): Option volume is running at ~9x the daily average on this biopharmaceutical company which is primarily being driven by two large blocks that simultaneously traded on the March 21^st expiration earlier this morning:

• 165.00 put (open interest is 816): A 1,000 contract block was bought for $1.72 when the bid/ask spread was $1.30 x $1.85.
• 160.00 put (open interest is 110): A 1,000 contract block was sold for $0.67 when the bid/ask spread was $0.55 x $0.90.

We know that both of these blocks are new positions based on the respective open interest figures, and it appears that a $5.00-wide bear put spread was established for a net debit of $1.05 (x 1,000 contract x 100 multiplier, excluding commissions). The positioning suggests that the block trader believes that DGX will close below the break-even price of $163.95 at expiration.

ManpowerGroup Inc. (MAN + $2.54 to $61.15): Option volume is running at ~5x the daily average on this provider of workforce solutions which is primarily being driven by a 2,000 contract block that was bought on the March 21^st 65.00 call at the ask price of $0.65 (open interest is 89). 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 + 3.01 to 24.94) has been in positive territory all day today (intraday range is 22.39-25.37), as equity markets are lower around the midday mark (DJI - 507, SPX - 109, COMPX - 461). VIX option volume is above average today at 619,143 contracts, which puts the index at the #7 spot on the "Top Volume by Underlying" list. The volume put/call ratio is currently 0.93, but the highest volume contract is the March 18^th 19.00 put (volume is 62,396 vs. open interest of 104,797).