Today's Options Market Update

As tariff "Liberation Day" dawns on Wall Street, stocks have been choppy, overcoming early losses and turning higher, with investors continuing to bid up perceived "safety" plays gold. The White House announcement—now set for 4 p.m. ET—could answer questions on how high tariffs might be, which countries they'll affect, whether they'll be universal or different for each country, and how much time there might be to negotiate. While having a few answers might bring some relief to a shaky market, lots will likely stay unclear, and equity volatility is rising.

"Treasury Secretary Scott Bessent said last week that the tariffs would focus on 15 countries with which the U.S. has large trade imbalances and that they would be a unique number designed to equalize the tariffs and non-tariff barriers placed on the U.S. by each country," said Michael Townsend, managing director of legislative and regulatory affairs at Schwab, in his latest look at what's known about the possible tariff picture. "But over the weekend, there were multiple reports that the White House was still considering across-the-board 20% tariffs on all imports, which is reminiscent of Trump's rhetoric from the campaign trail in 2024. On Sunday night, Trump said 'essentially all' countries would be hit with some sort of tariff later this week."

In non-trade news, investors got a fresh look at the jobs picture early today with ADP's private sector report for March. The data came in above expectations at 155,000 and included gains in manufacturing, but that doesn't necessarily mean much for Friday's government numbers. Analysts see job gains of 130,000, down from 151,000 in February, with unemployment staying at 4.1%. Trade uncertainty makes it hard to predict hiring trends. "Companies can't plan if they aren't sure whether tariffs imposed today will be modified or delayed next week or next month," Townsend said. "How can a business decide whether to upgrade equipment or hire a new employee if they don't know what the demand for their products will be in the months ahead?"

The 10-year U.S. Treasury yield (TNX) is higher by ~4 basis points to 4.21%.

The U.S. Dollar Index ($DXY) is lower by 0.38 at 103.88.

WTI Crude Oil (/CL) is higher by 0.70% to $71.70/barrel.

Gold prices continue to climb to all-time highs today and have traded in a range of $3,135.70-$3,177.70, last seen trading higher by 0.75% to $3,169.50/oz.

Natural Gas prices have traded in a range of $3.94-4.09 and were last seen trading higher by 2.35% to $4.04.

Bitcoin (BTC) is higher by ~2.17% to $87,015.00.

Continuing to gap higher this morning is Petco Health & Wellness Company Inc. (WOOF + $0.37 to $3.33) following news that Petco Chief Executive Officer Joel Anderson disclosed the purchase of 1.6 million shares of WOOF, lifting his ownership to 5.5 million shares. Calls are outnumbering puts ~7:1, with the April 17th 3.50 call seeing the highest volume contract (volume is 677).

Also moving higher this morning is Rocket Companies Inc. (RKT + $1.32 to $13.92) after Deutsche Bank upgraded the mortgage services company to "Buy" from "Hold" while increasing their price target on the stock to $16.00 from $14.00. Deutsche Bank analyst Mark DeVries cited potential earnings accretion resulting from its pending acquisition of Mr. Cooper Group Inc. (COOP). Calls are outnumbering puts ~5:1, with the March 20th 2026 15.00 call being the highest volume contract (volume is 14,886).

New 52-week highs (14 new highs today): Albertsons Companies Inc. (ACI + $0.14 to $22.53), Mckesson Corp. (MCK + $7.56 to $681.25), Monster Beverage Corp. (MNST - $0.02 to $59.02)

Some unusual call activity (~17:1 calls over puts) is being seen in Stellantis N.V. (STLA + $0.03 to $11.12) as option traders primarily target the May 16th 11.00 call. Volume on this contract is 13,149 (vs. open interest of 660), which included two large contract blocks (10K and 1.46K) that were bought at the ask price of $0.55 each. We know these blocks are fresh positions based on the open interest figure and we can assume the intent is bullish in nature since the trades took place at the ask price.

Gapping down to over a 1-year low is Edgewise Therapeutics Inc. (EWTX - $5.30 to $14.84) after the skeletal and cardiac muscle disease novel therapeutics company released mixed results for its treatment of hypertrophic cardiomyopathy in certain patients. Puts are outnumbering calls ~5:1, with the April 17th 22.00 put seeing the highest volume contract (volume is 3,710).

Also trading to the downside this morning is Rivian Automotive Inc. (RIVN - $0.87 to $12.41) after the electric vehicle manufacturer announced first quarter deliveries of 8,640 vehicles compared to FactSet estimates of 8,610, while announcing production of 14,611 vehicles, versus the estimated 12,380. Calls are outnumbering puts ~3:1, with the May 16th 14.00 call seeing the highest volume contract (volume is 10,417).

New 52-week lows (242 new lows today): Hologic Inc. (HOLX - $0.91 to $60.47), Krispy Kreme Inc. (DNUT + $0.03 to $4.89), Regeneron Pharmaceuticals Inc. (REGN + $3.88 to $619.88)

Some unusual put activity (~5:1 puts over calls) is being seen in consumer-packaged goods company Conagra Brands Inc. (CAG - $0.29 to $26.32) which is primarily being driven by various sized blocks that were bought at various times on the April 04th 27.00 put at the ask prices between $1.20-$1.25. Volume on this contract is 3,026 versus open interest of 21, so we know the majority of the activity represents new positioning, and we can assume the intent is bearish in nature since the trades took place at the ask price.

International Flavors & Fragrances Inc. (IFF + $0.18 to $77.61): Option volume is running at ~71x the daily average on this flavor and fragrance company as option traders primarily target the May 16th 90.00 call. Volume on this contract is 4,097 versus open interest of 164, so we know that the volume primarily represents fresh positioning. The bulk of the transactions consisted of various-sized blocks that were bought at various times for between $0.35-$0.40 each, which suggests bullish intent.

Edison International (EIX + $1.29 to $60.04): Option volume is running at ~23x the daily average on this utility company which is primarily being driven by a 7.25K contract block that was bought on the April 17th 62.50 call at the ask price of $0.60 (open interest is 835). We know that this block is a new position based on the open interest figure and we can assume the intent is bullish in nature since the trade took place at the ask price.

Scotts Miracle-Gro Company (SMG + $2.54 to $577.31): Option volume is running at ~5x the daily average on this agriculture company which is primarily being driven by a 4.87K contract block that traded on the June 20th 62.50 call for $2.30 when the bid/ask spread was $1.40 x $2.40 (open interest is 184). We know that this block is a new position based on the open interest figure and we can assume the intent is bullish in nature since the trade took place above the midpoint of the bid/ask spread.

The Cboe Volatility Index (VIX – 0.79 to 20.98) has been on both sides of the unchanged mark today (intraday range is 20.90-23.66), as equity markets are higher around the midday mark (DJI + 292, SPX + 44, COMPX + 189). VIX option volume is above average today at 676,249, which puts the index at the #7 spot on the "Top Volume by Underlying" list. The volume put/call ratio is currently 0.58 with the highest volume contract being the April 16th 40.00 call (volume is 82,797 vs. open interest of 287,336).