Today's Options Market Update

U.S. stocks are oscillating around the flatline after reversing pre-market gains following a larger-than-expected acceleration in weekly initial jobless claims and after the monetary policy decision from the European Central Bank (ECB). The ECB held its stance steady but said it plans to end its asset purchase program July 1 and then raise its benchmark interest rate by 25 basis points that month as well after downgrading its economic growth outlook and boosting its inflation forecast. The markets are choppy amid festering inflation concerns and on the eve of tomorrow's key May consumer price data. Treasuries are mixed as yields on the short-and-mid range of the curve are rising and the U.S. dollar has turned higher. Crude oil prices are cooling off after jumping above $122 per barrel yesterday and gold is seeing some pressure. In equity news, Target Corporation raised its quarterly dividend by 20.0%, and Signet Jewelers topped earnings forecasts and issued favorable guidance, while Five Below missed revenue estimates and lowered its guidance. Asia finished mixed as Chinese and Hong Kong markets moved lower as Shanghai renewed some COVID lockdowns, and Europe is trading lower after the ECB's decision.

At 10:35 a.m. ET, the Dow Jones Industrial Average is down 0.2%, and the S&P 500 is declining 0.4%, while the Nasdaq Composite is ticking 0.1% higher. WTI crude oil is nudging $0.26 lower to $121.85 per barrel, and Brent crude oil is rising $0.09 at $123.67 per barrel. The gold spot price is down $14.00 to $1,842.50 per ounce, and the Dollar Index is advancing 0.4% at 102.95. Natural Gas prices have traded in a range of $8.016-8.715 and were last seen trading lower by $0.325 (or -3.74%) to $8.374/MMBtu.

Source: Schwab Center for Financial Research

Today’s Bullish Activity

Moving higher this morning is Tesla Inc. (TSLA + $18.17 to $743.77) after the China Passenger Car Association (CPCA) reported that Tesla sold 32,165 China-made vehicles in May, which is up from 1,152 vehicles in April. Separately, UBS upgraded TSLA to “Buy” from “Neutral” while maintaining their $1,100 price target on the stock. Calls are outnumbering puts ~4:3 with the June 10th 800.00 call garnering the most attention from traders (volume is 89,285).