Today's Options Market Update

U.S. stocks are mixed as the markets sift through a plethora of data and continue to wrestle with the implications of persisting inflation and a tight labor market on Fed monetary policy aggressiveness. Retail sales rose much more than anticipated in January, which may be further complicating the matter, homebuilder sentiment improved by the most since the summer of 2013, and business inventories continued to rise. However, industrial production came in below forecasts, mortgage applications dropped, and New York manufacturing remained in contraction territory. Q4 earnings season continues to roll on, with Airbnb topping estimates and offering upbeat guidance, and Kraft Heinz also exceeding earnings estimates, while Devon Energy missed profit projections. Treasury yields are mostly higher, and the U.S. dollar is rallying. Crude oil and gold prices are lower. Asia finished mostly lower, and Europe is trading mostly to the upside.

At 12:23 p.m. ET, the Dow Jones Industrial Average and the S&P 500 Index are down roughly 0.5%, while the Nasdaq Composite is higher by 0.05%. WTI crude oil is losing $0.92 to $78.14 per barrel, and Brent crude oil is declining $1.03 at $84.55 per barrel. The gold spot price is falling $22.20 to $1,843.20 per ounce, and the Dollar Index is advancing 0.7% to 103.97. Natural Gas prices have traded in a range of $2.493-2.607 and were last seen trading lower by $0.037 (or - 1.44%) to $2.53/MMBtu.

Source: Schwab Center for Financial Research

Today’s Bullish Activity

Shares of Airbnb Inc. (ABNB + $14.23 to $135.10) are gapping up to a nine-month high this morning after the homestay rental platform reported Q4 earnings of $0.48 per share ($0.23 beat) on revenue of $1.90B (above the $1.86B consensus estimate) as Q4 bookings for nights and experience increased 20% year-over-year (YoY). Looking ahead, the company said that Q1 revenue is expected to come in a range of $1.75-1.82B (above the $1.69B consensus estimate) and expects to maintain last year’s margin of 35%, which represents the highest % since the company went public back in 2020. Calls are outnumbering puts ~5:4 with the February 17th 135.00 call being the highest volume contract (volume is 13,311).

Also trading to the upside is Analog Devices Inc. (ADI + $10.68 to $193.22) after the chipmaker reported fiscal Q1 earnings of $2.75 per share, excluding non-recurring items ($0.15 beat) on revenue that rose 21.1% year-over-year to $3.25B (above the $3.15B consensus estimate). Additionally, the company issued upside guidance as Q2 EPS is expected to come in a range of $2.65-2.85 on revenue that is expected to come in a range of $3.1-3.3B, which is above the respective $2.42 and $3.04B consensus estimates. Calls are outnumbering puts ~2:1 with the February 17th 200.00 call seeing the most action from traders (volume is 913).