Today's Options Market Update

The economy unexpectedly lost 23,000 jobs last month, according to today's U.S. nonfarm payrolls report. It was the first monthly decline since February and could ignite concerns about the pace of economic growth, though unemployment fell to 4.1%. The government also downwardly revised combined May and June jobs growth by 103,000. Analysts had expected jobs growth of 86,000 and unemployment steady at 4.2%. Major indexes, which climbed before the report, initially held gains while Treasury yields declined as traders dialed back rate hike odds.

The report "should give the Fed more comfort in their decision to hold rates steady last week," said Collin Martin, head of fixed income research and strategy at the Schwab Center for Financial Research (SCFR). The Federal Reserve's decision gets more complicated when inflation is high but the labor market might be softening, Martin added, noting the central bank will likely consider whether the economy can handle tighter policy when deciding if and when to hike. "With a stable labor market and high inflation, a hawkish pivot makes sense," Martin said. "This morning's report could keep those officials favoring a hold from moving to the 'hike' camp."

Yesterday's early gains faded as rising crude oil prices and Treasury yields pressured sentiment, while investors waited for clarity on Strait of Hormuz traffic. The Dow Jones Industrial Average snapped a five-day winning streak, though volume remained below average ahead of today's payrolls report. Thursday's weakness appeared driven more by sharp single-stock earnings reactions than broad macro stress. Sector action was weak, with nine of 11 sectors lower, but most remain higher for the week and the market is still on pace for solid weekly gains.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is lower by 3 bps at 4.64%.

The U.S. Dollar Index ($DXY) is down slightly to 99.57.

The CBOE Volatility Index^® (VIX) is lower by 1.45%, trading at 14.93.

WTI Crude Oil (/CL) is higher by 1.09% to $78.13/barrel.

Bitcoin (BTC) is up by 0.87% to $65,180.

Ethereum (ETH) is higher by 0.55% to $1,925.

Atlassian Corp. (TEAM + $38.69 to $148.68) shares are up roughly 35% today, putting the stock on pace for its largest one-day gain since listing in 2015. The rally follows stronger quarterly revenue, better-than-expected earnings, and first-quarter guidance that topped analyst expectations. Fourth-quarter revenue rose 28% year over year to $1.77 billion for the three months ended June 30, Atlassian said Thursday. The company projected first-quarter revenue of $1.71 billion to $1.72 billion, above the $1.67 billion average analyst estimate, and said total revenue growth is expected to be approximately 13.0% year over year.

Earnings also topped estimates. Fourth-quarter adjusted EPS rose 90% year over year to $1.87, well above the $1.50 estimate, while adjusted gross margin came in at 89%.

Analysts responded positively to the results and outlook. BofA upgraded Atlassian to Buy from Neutral with a $175 price target. Jefferies raised its target to $200 from $150, citing 31% cloud revenue growth that beat guidance by 5 percentage points and a path to at least 20% medium-term revenue growth. Baird also lifted its target to $200 from $120, noting that Atlassian's AI positioning is beginning to gain traction.

Option trading in TEAM currently stands at 35,679 contracts, 10x average volume, with calls outpacing puts 3:1. The most active contracts are:

• September 18th, 2026, 140.00 call accounted for 6,005 contracts; open interest is 9,528 contracts.
• September 18th, 2026, 145.00 call accounted for 1,333 contracts; open interest is 2,207 contracts.
• September 18th, 2026, 160.00 call accounted for 1,146 contracts; open interest is 1,029 contracts.

New 52-week highs (188 new highs today): Masterbeef Group (MB + $5.29 to $9.04), Yunji Inc. (YJ + $9.72 to $10.95), Airbnb Inc. (ABNB + $23.43 to $175.07), Cloudflare Inc. (NET + $22.98 to $307.41)

Call activity is elevated in The RealReal Inc. (REAL - $0.39 to $12.38), with 12,276 calls traded—12x average volume and 40x put volume. Most of the flow appears tied to a large November 20th, 2026, call purchase, as traders paid $1.30—just below the offer—for more than 10,000 of the 15.00 strike calls across multiple large block trades. With open interest at only 290 contracts, the activity likely represents new positioning and suggests a bullish bias. The flow follows a 50% earnings beat and revenue that also topped estimates. Shares of REAL touched an intraday high of $13.82 before fading back toward current levels.

Call activity is also elevated in Doximity Inc. (DOCS + $9.15 to $29.81), with 26,182 calls traded—13x average volume and twice put volume. More than half the flow is concentrated in the August 21st, 2026, expiration, led by the 22.50, 30.00, and 32.50 strikes. Trading has been two-sided, but the larger trades appear to be buy-side flow likely closing short call positions, suggesting bullish intent. Shares of DOCS surged more than 43% after the healthcare software company raised its fiscal 2027 revenue forecast and reported fiscal first-quarter sales that topped expectations. The stock touched an intraday high of $40.00 before easing back toward current levels.

Shares of The Trade Desk Inc. (TTD - $3.17 to $14.49) are down roughly 18% today, trading at a multi-year low, after the advertising technology company reported a weaker-than-expected second quarter and issued third-quarter revenue guidance that missed analyst estimates. Adjusted EPS came in at $0.34, below the $0.40 estimate, while revenue rose 3% year over year to $715 million, short of the $752.4 million estimate.

For the third quarter, The Trade Desk expects revenue of at least $650 million, about 20% below the $808.4 million estimate. The company also guided to adjusted EBITDA of approximately $160 million, well below the $342.6 million estimate.

Bloomberg Intelligence said the weak outlook raises questions about the credibility of The Trade Desk's turnaround, particularly as competition intensifies from Amazon's lower-priced DSP and Google's AI-driven media-buying tools. BI also noted that broader ad demand remains resilient, suggesting the weakness looks increasingly company-specific rather than industry-wide.

Several analysts downgraded TTD following the release, including Baird, which cut the stock to Neutral with a $9 price target; Truist, which cut it to Hold with a $16 target; and Raymond James, which lowered its rating to Underperform.

Option trading in TTD currently stands at 199,793 contracts, 4x the average daily volume with calls outpacing puts nearly 2:1. Leading the way are the following trades, expirations, and strikes:

• August 7th, 2026, 13.50 call accounted for 10,328 contracts; open interest is 141 contracts.
• August 7th, 2026, 14.00 put accounted for 8,085 contracts; open interest is 5,149 contracts.
• August 7th, 2026, 14.00 call accounted for 7,176 contracts; open interest is 33 contracts.

New 52-week lows (38 new lows today): The Trade Desk Inc. (TTD - $3.17 to $14.49), Ardelyx Inc. (ARDX - $0.74 to $4.13), CVRx Inc. (CVRX - $3.43 to $2.51), Clean Energy Fuels (CLNE - $0.20 to $1.66)

Put activity is elevated in Take-Two Interactive (TTWO + $9.28 to $241.75), with 15,451 puts traded—9x average volume and nearly 2x call volume. Most of the flow appears tied to a large September 18th, 2026, put sale, as traders sold 10,500 of the 200.00 strike puts for $2.20, below the midprice, in a single block transaction. With open interest at only 722 contracts, the activity likely represents new positioning and suggests neutral-to-bullish intent. Shares of TTWO are up roughly 4% today following an earnings beat, though the stock remains down 6% year to date.

Put activity is unusually elevated in Tenax Therapeutics Inc. (TENX + $0.29 to $13.60), with 9,149 puts traded—6x average volume and 3x call volume. Most of the flow is concentrated in the August 21st, 2026, expiration, where traders bought more than 6,500 of the 10.00 strike puts across three large block trades for an average price of $4.28, just below the offer. With open interest at only 1,941 contracts, the activity likely represents new positioning or additions to existing long puts, suggesting bearish intent. Shares of TENX have pulled back roughly 30% from their 52-week high of $19.40, set about a month ago.

The Cboe Volatility Index (VIX - 0.22 to 14.93) is slightly lower today, trading near a three-month low, as equity markets are higher across the board (DJI + 94, SPX + 46, COMPX + 335). VIX movement has occurred within a narrow range today (the intraday range is 14.83 to 15.35). The highest volume contract is currently the August 19th, 2026, 17.50 put (volume is 30,016 vs. open interest of 109,708).