Today's Options Market Update

Rebound Effort: Stocks Rise Despite Amazon's Dive

February 6, 2026 Joe Mazzola

Strength in the beaten-down tech sector gave early support today even as Amazon cratered 8% on worries about its spending plans. AI and chip stocks rose and bitcoin also rallied.

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A miserable week for tech mercifully approaches the finish line today. Major indexes posted early gains despite Amazon's (AMZN) plunge after it spooked investors with heavy spending plans. The tech-packed Nasdaq-100^® (NDX) is down 4% from last Friday's close as software and AI shares weakened, and bitcoin is in even worse shape, down 50% from October's all-time high and trading at levels last seen before the November 2024 election. The S&P 500 Index is now red for 2026, wiping out roughly $1 trillion in market capitalization.

Investors regroup today, awaiting consumer sentiment data soon after the open following yesterday's surprising surge in January layoffs and a slide in job openings that weighed on Treasury yields. If consumers prove unhappy, it might point back to those employment reports. Coming days are huge from a data perspective with nonfarm payrolls due Wednesday and the Consumer Price Index (CPI) a week from now. Earlier this week, the ISM Manufacturing PMI^® showed expansion, but things weren't glowing underneath, with a "stark difference between the strong headline report and the very somber verbatim comments from survey respondents," said Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research (SCFR).

On Thursday, investors found few places to hide amid torrid selling as every major index fell 1% or more. Light gains occurred in traditionally defensive sectors like consumer staples and utilities, along with perceived safe havens including the U.S. dollar and Treasuries. But bitcoin was the real spoiler of the party, dragging crypto-related stocks and casting a pall as investors worried that crippled crypto might translate into weakness elsewhere. Bitcoin rebounded slightly early today, still at 16-month lows, while AI and chip-related stocks drove overnight gains on Wall Street. Nvidia (NVDA) rose more than 2.5%.

Source: Schwab Center for Financial Research

Morning Rush

The 10-year U.S. Treasury yield (TNX) is unchanged at 4.23%.

The U.S. Dollar Index ($DXY) is lower by 0.17% to 97.66.

The CBOE Volatility Index^® (VIX) is down 17.32% to 18.00.

WTI Crude Oil (/CL) is higher by 1.45% to $64.21/barrel.

Bitcoin (BTC) is up by 10.43% to $70,450.

Ethereum (ETH) is up by 9.87% to $2,053.

Today's Bullish Activity

Shares of Roivant Sciences Ltd. (ROIV + $3.80 to $24.94) are up over 18.00% today, on track for a record high close, after the company reported Q3 earnings and positive Phase 2 results for brepocitinib, an experimental drug to treat a rare inflammatory skin condition. Investors appear to be focusing more on the upside potential of the Phase 2 results than the Q3 results, as earnings tipped negative in the quarter, falling to a loss of $0.38 per share while revenues also declined to $2 million.

Bloomberg reported that the Phase 2 trial results for brepocitinib showed that the drug significantly improved Cutaneous Sarcoidosis (CS) disease activity, achieving a 22.3-point improvement in mean CSAMI-A at Week 16 versus a 0.7-point improvement in placebo. An NDA was subsequently submitted to the FDA for brepocitinib in dermatomyositis.

Option trading in ROIV currently stands at 12,116 contracts, 42x the average daily volume with calls outpacing puts 10:1. Leading the way are the following trades, expirations, and strikes:

February 20th, 2026, 23.00 call accounted for 10,809 contracts; open interest is 15,540 contracts.
February 20th, 2026, 22.00 call accounted for 263 contracts; open interest is 632 contracts.
March 20th, 2026, 28.00 call accounted for 100 contracts; open interest is 29 contracts.

New 52-week highs (442 new highs today): Ambev S.A. (ABEV + $0.02 to $2.94), Roivant Sciences Ltd. (ROIV + $3.80 to $24.94), Coca-Cola Company (KO + $0.11 to $78.62), Exxon Mobile Corp. (XOM + $2.79 to $148.87)

Notable Call Activity

Unusual call activity is noted today in Rumble Inc. (RUM + $0.30 to $5.65), as call volume currently stands at 9,920 contracts, 38x the average daily volume and 40x the put volume. Most of the activity can be attributed to large block buy orders in the February 13th, 2026, expiration month, specifically at the 6.00 strike. Contracts have totaled 8,900 contracts, with activity on both sides, but primarily skewed to the buy side, as implied volatility is up 0.37%. Prices ranged from $0.09 to $0.25 each. With open interest of 507 contracts, we know this represents new positioning (suggesting bullish intent). Shares of RUM are down nearly 60% from their 52-week high price of $13.82.

Another name exhibiting unusual call activity today is Hawaiian Electric Industries Inc. (HE+ $0.06 to $17.05), as call volume has risen to 12,529 contracts in morning trading, 23x the average volume and 400x the put volume. Traders are most active in the February 20th, 2026, expiration, particularly at the 20.00 strike call where over 11,700 contracts have traded, collectively, primarily on the buy side, as implied volatility is higher by 0.67%. With only 210 contracts of open interest, we can assume this was new positioning (suggesting bullish intent). Shares of HE hit a 52-week high of $17.38 earlier today.

Today's Bearish Activity

Shares of Stellantis NV (STLA - $2.25 to $7.28) are plunging over 23.00% today, to a post-merger low, after the car company released earnings that were much weaker than expected and announced plans to write down more than $26 billion in charges linked to a reversal of its former EV strategy. Per the report, the charges will cover the cost of canceling EVs and compensating suppliers, in what the company's CEO referred to as charges that "largely reflect the cost of over-estimating the pace of the energy transition."

Stellantis also warned it's expecting to report a second-half deficit of as much as $1.75 billion, with a forecast of a mid-single-digit increase in revenue and a low-single-digit adjusted operating income margin for 2026, per Bloomberg.

Option trading in STLA currently stands at 26,852, contracts, 19x the average daily volume with calls outpacing puts 2:1. Leading the way are the following trades, expirations, and strikes:

January 15th, 2027, 10.00 call accounted for 3,198 contracts; open interest is 8,516 contracts.
February 6th, 2026, 7.50 call accounted for 1,585 contracts; open interest is two contracts.
March 20th, 2026, 7.00 put accounted for 1,488 contracts; open interest is 528 contracts.

New 52-week lows (106 new lows today): Stellantis NV (STLA - $2.25 to $7.28), Hims & Hers Health Inc. (HIMS - $0.15 to $23.33), Coty Inc. (COTY - $0.65 to $2.50), ServiceNow Inc. (NOW - $1.07 to 101.56)

Notable Put Activity

There is unusual put activity today in Elanco Animal Health (ELAN + $0.67 to $24.98). This activity equates to over 6,349 put contracts, 1300x average daily put volume and 60x call volume. A large block trade in the March 20th, 2026, expiration accounted for nearly all the volume. Traders bought 6,000 of the 22.00 strike put contracts, paying $1.00 when the bid/ask was $0.35 x $1.05. There were zero contracts of open interest, so we know this represents new positioning (suggesting bearish intent). Shares of ELAN hit a fresh 52-week high yesterday, and with earnings scheduled for February 24th, this could be an attempt to hedge downside risk.

Unusual activity has also been detected in GXO Logistics Inc. (GXO + $2.06 to $58.40), as put volume stands at 6,033 contracts, 500x average volume and 40x call volume, in morning trading. Most of the volume can be attributed to a large block put vertical trade that occurred in the February 20th, 2026 expiration. Traders purchased 2,500 (5,000 options total) of the 55.00/47.50 put vertical spread, paying $1.25 when the bid/ask was $0.35 x $1.60. There was a total of 652 collective contracts of open interest between the two strikes, so we know these are new positions (suggesting bearish intent). Shares of GXO hit a 52-week high price of $58.95 just yesterday, and the company reports earnings next week, so this could also be a hedge against downside risk.

Gauging Volatility

The Cboe Volatility Index (VIX - 3.77 to 18.00) is down by 17.32%, as equity markets are much higher across the board, staging a rebound after this week's weakness (DJI + 980, SPX + 103, COMPX + 361). VIX movement has occurred within a wider range today (the intraday range is 17.98 to 21.49). The highest volume contract is currently February 18th, 2026, 17.00 put (volume is 22,736 vs. open interest of 118,510).

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