Today's Options Market Update

Consumer prices beyond food and energy rose 0.3% in September, outpacing consensus of 0.2% and raising concerns that higher oil prices might be burrowing deeper into the economy. The headline Consumer Price Index (CPI) rose 0.6%, as expected, but the core number sent Treasury yields up quickly. Major indexes, which had been up approaching the data, quickly surrendered their gains and turned red as rate hike odds jumped.

"The September core CPI print came in a bit hot," said Collin Martin, head of fixed income research and strategy at the Schwab Center for Financial Research (SCFR). "That marks the second straight 0.3% monthly increase, bringing up the three-month annualized rate of change to 3.4%." Short-term Treasury yields jumped, with the 2-year Treasury note yield rising more than 10 basis points to 4.89%. Short-term yields are closely linked to Federal Reserve policy expectations, and rate hike odds for this month surged to 46%, according to Bloomberg, from around 20% before CPI.

Major indexes flattened Tuesday with trading subdued ahead of CPI. Buying interest seemed slim, with little enthusiasm toward testing recent record highs. Five of 11 S&P 500 sectors rose, down from eight Monday, and energy led again. Financials fell 0.4% on a big earnings day. Tomorrow brings September retail sales and the Producer Price Index. Analysts expect retail sales growth of 0.3%, while consensus for PPI is 0.5%.

The 10-year U.S. Treasury yield (TNX) is up 2 bps at 5.23%.

The U.S. Dollar Index ($DXY) is slightly higher to 102.88.

The CBOE Volatility Index^® (VIX) is up 9.00% to 16.65.

WTI Crude Oil (/CL) Futures are higher by $1.18 to $95.32/barrel.

Bitcoin (BTC) is lower by 2.00% to $81,725.

Ethereum (ETH) is down by 3.11% to $2,433.

Shares of Bending Spoons (BSP + $15.86 to $53.72) surged 42% in early trading after the company announced a new $330 million investment from Berkshire Hathaway Inc. The investment increases Berkshire's stake in Bending Spoons to 4%, just three months after it participated in the company's initial public offering. The additional capital gives the Milan-based company greater flexibility to pursue acquisitions as it expands its portfolio of digital businesses. Berkshire previously invested $600 million in Bending Spoons at its July IPO.

Under the private placement, Bending Spoons will issue 10 million ordinary shares to Berkshire at $33 per share, the company said in a statement Wednesday. The transaction remains subject to customary closing conditions, according to Bloomberg.

Option trading in BSP currently stands at 22,281 contracts, 23x average volume, with puts outpacing calls 2.5:1. The most active contracts are:

• December 18th, 2026, 50.00 put accounted for 2,702 contracts; open interest is zero contracts.
• December 18th, 2026, 38.00 put accounted for 2,215 contracts; open interest is 2,213 contracts.
• October 16th, 2026, 55.00 call accounted for 1,499 contracts; open interest is 81 contracts.

New 52-week highs (68 new highs today): Pfizer Inc. (PFE + $0.91 to $29.28), Petroleo Brasileiro (PBR + $0.34 to $24.84), Gamestop Corp. (GME + $0.70 to $27.92), Shell Plc. (SHEL + $0.73 to $103.72)

Call activity is elevated in Albemarle Corp. (ALB + $1.54 to $99.19), with 14,278 calls traded—15x average volume. Most of the activity is concentrated in the November 20th, 2026, 115.00-strike calls, where more than 12,500 contracts have changed hands. Trading has been two-sided, with a slight bias toward buying at prices ranging from $2.50 to $2.70 each. With open interest of only 1,494 contracts at the strike, the activity appears to represent new positioning and suggests bullish intent. ALB shares are higher today following an upgrade and price-target increase to $130 from Mizuho, but remain down more than 50% over the past five months.

Call activity is elevated in Microchip Technology (MCHP - $2.66 to $71.50), with 247,867 calls traded—154x average volume. Nearly all the activity stems from a large diagonal roll involving the October 16th and December 18th, 2026, expirations. Traders sold 157,872 October 72.50 calls at $0.80 and subsequently purchased more than 88,000 December 70.00 calls through two large block trades at an average price of $7.14. Based on open interest, the October trades appear to be closing long positions, while the December calls represent new positioning, suggesting bullish intent. Shares of MCHP are down more than 30% from their 52-week high of $105.91, set in early May.

Shares of CoreWeave (CRWV - $11.24 to $66.57) are down more than 14% today, falling to their lowest level since late July and extending their five-month decline to 50%, as concerns mount over the company's rising debt-financing costs. CoreWeave reported $640 million in second-quarter net interest expense, more than double the $267 million recorded a year earlier, alongside a $626 million net loss. Its unsecured bond yields neared 15%, as the bond price fell to $79.50 on Wednesday, down from $85 at the start of the month. The rising cost of debt has drawn concern from analysts, including Gil Luria of D.A. Davidson, who warned that expensive borrowing could leave CoreWeave unable to meet its debt obligations if the AI boom slows. Luria noted that the company is borrowing at roughly 9% while generating an estimated return of just 1% on its investments. Even CoreWeave's targeted return of 4% to 5% would remain below its borrowing costs, according to Bloomberg.

Option trading in CRWV currently stands at 527,483 contracts, 11x the average daily volume with puts outpacing calls 1.5:1. Leading the way are the following trades, expirations, and strikes:

• January 15th, 2027, 50.00 put accounted for 43,427 contracts; open interest is 7,705 contracts.
• January 15th, 2027, 60.00 put accounted for 36,027 contracts; open interest is 12,881 contracts.
• December 18th, 2026, 37.50 put accounted for 26,247 contracts; open interest is 1,204 contracts.

New 52-week lows (349 new lows today): Cipher Digital Inc. (CIFR - $1.22 to $10.11), Sofi Technologies Inc. (SOFI - $1.18 to $14.06), Plug Power Inc. (PLUG - $0.12 to $1.44), Rocket Companies (RKT - $0.63 to $10.20)

Put activity is elevated in Riot Platforms Inc. (RIOT - $1.34 to $15.33), with 113,121 puts traded—15x average volume and 4x call volume. Most of the activity is concentrated in the December 18th, 2026, expiration, where multiple block sales of the 10.00-strike puts totaled 99,963 contracts at an average price of $0.20 per contract, the bid at the time of the trades. With open interest of only 617 contracts, the trades appear to represent new neutral-to-bullish positioning, suggesting traders expect the recent selling pressure to ease. RIOT shares have fallen nearly 50% over the past two months, while the selected 10.00 strike sits just below the year-to-date low of $11.50.

Put activity is elevated in Galaxy Digital Inc. (GLXY - $1.28 to $18.43), with 16,968 puts traded—5x average volume and 5x call volume. More than three-quarters of the activity is concentrated in the October 23rd, 2026, expiration, led by a put vertical spread involving the 19.00- and 18.00-strike puts. Traders sold 5,999 of the 19.00/18.00 put spreads in a single block order for $0.47, slightly below the midprice of the bid/ask spread. With combined open interest of only 289 contracts at the two strikes, the trade appears to represent new neutral-to-bullish positioning. The choice of the strike is interesting, given the 19.00 strike is slightly in-the-money. Shares of GLXY are down more than 45% over the past four months, with the Relative Strength Index testing oversold territory at 29 today.

The Cboe Volatility Index (VIX + 1.38 to 16.65) is up 9.00% today, as equity markets are lower in early trading (DJI - 169, SPX - 87, COMPX - 461). VIX movement has occurred within a wide range today (the intraday range is 14.98 to 16.76). The highest volume contract is currently the November 18th, 2026, 21.00 call (volume is 30,054 vs. open interest of 102,952).