Today's Options Market Update

U.S. jobs growth surged last month to 172,000, roughly doubling expectations, the Bureau of Labor Statistics (BLS) said, while unemployment remained at 4.3%. In addition, the government upwardly revised job gains for March and April, suggesting the labor market remains healthy despite war-fueled inflation and weak consumer sentiment. Stocks reacted poorly to the report in a "good news is bad news" scenario driven by Treasuries. The benchmark 10-year note yield jumped to 4.54%, fueled by concerns that the Federal Reserve might have to tame a hot economy.

Consensus was for May jobs growth of 85,000, down from a revised 179,000 in April. Unemployment was seen unchanged. "This was a massive upside surprise," said Cooper Howard, director of fixed income research and strategy at the Schwab Center for Financial Research (SCFR). "The headline number was good, but the revisions were also positive. It's likely the Fed remains on hold for the time being."

Major indexes roared back from early chip-driven weakness Thursday to end mostly up, putting the S&P 500 Index on pace for a possible 10th straight week of gains—something last accomplished in late 1985. Eight of 11 S&P 500 sectors rose Thursday, the kind of healthy breadth that tends to reinforce faith in rallies if it persists. Sectors like financials and healthcare found buyers as investors rotated out of tech. About 56% of S&P 500 stocks now trade above their 50-day moving average, still low considering the index trades near record highs.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is higher today, by 5 bps to 4.54%.

The U.S. Dollar Index ($DXY) is trading higher today by 0.58%, to 99.99.

The CBOE Volatility Index^® (VIX) is higher by 11.30%, trading at 17.19.

WTI Crude Oil (/CL) is lower by 2.35% to $90.82/barrel.

Bitcoin (BTC) is down another 5.43% to $60,330.

Ethereum (ETH) is lower by 11.40% to $1,577.

Cooper Companies Inc. (COO + $4.34 to $66.36) is up nearly 8% today, on pace for its largest gain since April 2025, after the contact-lens maker reported second-quarter sales and adjusted profit that topped analyst estimates. For Q2, Cooper posted adjusted EPS of $1.21, up from $0.96 a year ago and above the FactSet consensus estimate of $1.10. Revenue rose to $1.08 billion from $1.00 billion a year earlier, also ahead of the $1.05 billion estimate.

The company also updated its fiscal 2026 guidance, now forecasting non-GAAP diluted EPS of $4.58 to $4.66 on revenue of $4.29 billion to $4.32 billion, compared with FactSet expectations of $4.62 per share on revenue of $4.32 billion. The softer outlook appears to have prompted price-target cuts, with Needham lowering its target to $86 from $101 and Baird reducing its target to $85 from $98.

Option trading in COO currently stands at 4,978 contracts, 10x average with calls outpacing puts 10:1. Leading the way are the following trades, expirations, and strikes:

• June 18th, 2026, 70.00 call accounted for 2,036 contracts; open interest is 2,616 contracts.
• July 17th, 2026, 80.00 call accounted for 827 contracts; open interest is 16 contracts.
• June 18th, 2026, 65.00 call accounted for 204 contracts; open interest is 2,388 contracts.

New 52-week highs (121 new highs today): Solidion Technology Inc. (STI + $13.39 to $36.10), Stak Inc. (STAK + $0.63 to $4.87), Eli Lilly and Company (LLY + $33.40 to $1158.67), Hinge Health Inc. (HNGE + $3.24 to $66.23)

Call activity is elevated in Hinge Health Inc. (HNGE + $3.24 to $66.23), with 8,653 calls traded—9x average volume and 5x put volume. Most of the activity is concentrated in the June 18th expiration at the 75.00 strike. While trading has been two-sided, the flow appears to have skewed to the buy side, with traders paying the offer on most transactions, suggesting bullish intent. The stock's 0.19 put/call ratio reinforces that constructive tone. Shares of HNGE have rallied more than 25% since the company reported a strong earnings beat on May 5th.

Sun Life Financial Inc. (SLF + $0.88 to $73.84) is seeing elevated call volume, with 9,441 calls traded—600x average volume and 1,000x put volume. Activity is concentrated in the June 18th expiration at the 80.00 strike. While trading has been two-sided, the larger blocks were bought near the offer at an average price of $0.10. With open interest at just 119 contracts, the flow appears to reflect new positioning and suggests bullish sentiment. Traders may be positioning for SLF to retest and potentially break above its 52-week high of $74.16, set before the stock pulled back following its May 6th earnings release.

Shares of Lululemon Athletica Inc. (LULU - $10.16 to $114.76) are down 8% today, falling to their lowest level in eight years after the company cut its annual forecast due to deteriorating sales performance in North America. The company now expects fiscal-year revenue of $11 billion to $11.15 billion, below the average analyst estimate compiled by Bloomberg.

Second-quarter U.S. sales, which account for just over half of revenue, are expected to decline in the low-double digits. In China, which generates about 19% of revenue, sales are expected to rise in the mid- to high-teens. For Q1, Lululemon met earnings expectations with EPS of $1.69, down from $2.60 a year ago, on revenue of $2.47 billion.

Per Bloomberg, Lululemon executives said the current quarter is likely to include the most markdowns of the year as the company works through inventory to make room for newer products at full price. Promotions are expected to improve modestly in the second half of the year.

Shares of LULU are now down more than 40% year to date, and analysts have responded negatively to the report. BofA cut its price target to $140 from $175, while Wells Fargo lowered its target to $110 from $150.

Option trading in LULU currently stands at 76,795 contracts, 14x the average daily volume with calls and puts basically even. Leading the way are the following trades, expirations, and strikes:

• June 5th, 2026, 110.00 put accounted for 4,159 contracts; open interest is 2,644 contracts.
• June 5th, 2026, 115.00 put accounted for 3,648 contracts; open interest is 1,759 contracts.
• July 17th, 2026, 190.00 call accounted for 3,023 contracts; open interest is 2,183 contracts.

New 52-week lows (80 new lows today): Hitek Global Inc. (HKIT - $0.07 to $0.26), Ocean Power Tech Inc. (OPTT - $0.09 to $0.29), Lululemon Athletica Inc. (LULU - $10.16 to $114.76), Lucid Group Inc. (LCID - $0.47 to $5.21)

Unusual put activity is showing up in Carrier Global Corp. (CARR - $1.57 to $66.97) today, with 6,861 puts traded—11x average volume and 25x call volume. The largest trade, accounting for most of the activity, was a sale of 6,699 July 10th 57.00 puts at $0.44, slightly below the mid-price. With open interest at zero contracts, the trade appears to reflect new positioning and suggests neutral-to-bullish intent. Shares of CARR have traded sideways since mid-April, with support near $60 and resistance near $70. Today's put selling suggests traders expect that lower end of the range to hold.

Unusual put activity is showing up in Energy Vault Holdings Inc. (NRGV - $0.83 to $5.66) today, with 5,269 puts traded—4x average volume and 0.5x call volume. Nearly all of the flow is concentrated in the November 20th expiration, driven by a 5,000-contract risk reversal using the 5.00 put and 7.00 call strikes. Traders bought the combination for a net debit of $0.30, effectively selling the puts to help finance the call purchase. Given the large open interest at both strikes, the trade appears to be an unwind of the opposite position, which may suggest expectations are shifting more constructively. That setup implies traders see shares holding above $5.00 with the potential to move beyond $7.00 by November expiration—above the prior 52-week high of $6.65 set yesterday.

Perdoceo Education Corp. (PRDO + $1.52 to $34.61): Option volume is running at ~386x the daily average on this provider of postsecondary education programs as option traders primarily target the July 17^th 40.00 call. Volume on this contract is 6,178 versus open interest of 188, so it’s likely that nearly all the volume represents fresh positioning. The bulk of the transactions consisted of various-sized blocks that were bought at various times for between $0.20-0.45 each, which suggests bullish intent.

Smithfield Foods Inc. (SFD + $0.48 to $26.18): Option volume is running at ~308x the daily average on this producer/seller of packaged meats and fresh pork products as option traders primarily target the June 18^th 30.00 call. Volume on this contract is 3,661 versus open interest of 1,001, 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 at the ask prices of $0.10 & $0.15 each, which suggests bullish intent.

Pilgrim’s Pride Corp. (PPC + $1.13 to $28.71): Option volume is running at ~161x the daily average on this producer/seller of frozen meat products which is primarily driven by a 4,550 contract block that was bought on the June 18^th 29.00 call for $1.10 when the bid/ask spread was $0.50 x $1.30 (open interest is 91). 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 above the midpoint of the bid/ask spread.

The Cboe Volatility Index (VIX + 1.79 to 17.19) is higher by 11.30% today, as equity markets are trading lower in morning trading, led by tech weakness (DJI - 295, SPX - 104, COMPX - 622). VIX movement has occurred within a wide range today (the intraday range is 15.56 to 17.21). The highest volume contract is currently the September 22nd, 2026, 22.00 put (volume is 22,000 vs. open interest of 38,847).