Midweek Market Pulse

Market Overview

The broader market remains in a watchful state mid-week. The Nasdaq-100 (NDX) is hovering near recent highs, while implied volatility (VXNCLS) has eased to around 22.6, signaling muted short-term fear.

Earnings, regulatory headlines, and macro data continue to drive pockets of volatility especially across healthcare and EV sectors.

For options traders, it’s a period of broad calm with selective heat. High-volatility setups like $OSCR and $RIVNcontinue to offer opportunity, while NDX options remain critical for gauging institutional hedging and directional flow.

Options Spotlight

$OSCR (Oscar Health Inc.)

Research Snapshot:
30-day implied volatility sits near ~88.97%, keeping OSCR in the high-IV zone. The company recently announced expansion of its individual and family health plans in Florida beginning Jan 1, 2026 a key catalyst for sentiment.

Setup Idea:
Consider a put spread (long X put / short lower-strike put) expiring in 3–4 weeks, targeting the $13 range depending on the chain. With IV elevated, this structure helps reduce cost while maintaining downside exposure.

Rationale:
The healthcare sector faces margin pressure and regulatory headwinds, making downside risk credible while the market awaits updates on the ACA extension.

Risk/Reward:
If regulatory or membership data disappoint, OSCR could pull back sharply. If nothing materializes, expect IV contraction and time decay.

Watch for: Healthcare policy developments or company-specific updates from OSCR management.

$RIVN (Rivian Automotive Inc.)

Research Snapshot:
RIVN delivered another positive gross profit quarter and beat across all key metrics in Q3 — lifting sentiment sharply. Options flow has shown institutional block trades, suggesting strong smart-money interest.

Setup Idea:
A call spread or covered call (sell $23 call / buy $25 call, 3–4 weeks out) captures income potential while limiting exposure after a 35% run-up this past week.
Look for dip-buy zones around $16.70–$17 for potential re-entry.

Rationale:
RIVN remains a post-earnings momentum favorite. Upcoming catalysts like EV production updates, AI & Autonomy Day (Dec 11), or delivery growth could spark another move higher.

Risk/Reward:
Call spreads define risk and cap cost. If catalysts fall flat, expect IV drop and premium decay.

Watch for: Delivery data, EV tax-credit adjustments, and updates from competitors (TSLA, LCID).

$ZETA (Zeta Global Holdings Corp.)

Research Snapshot:
ZETA a mid-cap AI-driven marketing tech firm (~$1.9B market cap) — recently announced a $325M acquisition of Marigold’s enterprise business, expanding into loyalty and lifecycle marketing. Growth remains strong, though profitability is still in scaling mode.

Setup Idea:
Consider a bullish put spread (sell $17 puts / buy $15 puts, 3–4 weeks out) to collect premium while defining risk.
Alternatively, December $20 calls can capture continued post-acquisition momentum and potential earnings re-rating.

Rationale:
ZETA’s Put/Call ratio (~0.41) highlights bullish sentiment. The Marigold deal could revalue the company as synergy benefits emerge.

Risk/Reward:
Upside potential remains strong, but traders should monitor for IV decay and rate-sensitive pullbacks.

Watch for: Integration progress, next earnings guidance, and price action around $20 support / $25 resistance.

$NDX (Nasdaq-100 Index)

Research Snapshot:
NDX remains elevated, with moderate IV and some downside hedging activity showing in skew. Market breadth is still narrow, but mega-cap tech strength continues to hold the index near highs.

Setup Idea:
A protective put or put spread on NDX (or via QQQ) provides insurance if a pullback unfolds amid extended valuations.

Rationale:
While tech leadership remains strong, CPI/PPI data and Fed commentary could quickly shift sentiment. Protective puts act as portfolio insurance during potential volatility spikes.

Risk/Reward:
The hedge will lose premium if markets grind higher, but it’s justified for traders managing drawdown risk.

Watch for: CPI/PPI prints, Fed minutes, and large put flow activity in NDX options.

Risk Radar

Catalyst Risk:
Earnings and macro data remain top volatility drivers for OSCR, RIVN, ZETA, and NDX.
Healthcare and EV policy updates could reprice risk quickly.

Macro Risk:
CPI/PPI data and Fed commentary this week are the wildcards any downside surprise could pressure NDX and growth names.

Technical/Liquidity Risk:
High-IV names like OSCR and RIVN carry decay risk if catalysts miss. For NDX, monitor for a momentum unwind if tech leadership fades.

Tip of the Week

When trading high-IV or small-cap names, defined risk is your advantage.
For index trades, think of options as insurance or leveraged exposure not casual bets.

Timing matters: avoid chasing after major IV spikes wait for contraction to optimize entry.

Stay disciplined. Stay informed.
— The BullTradeFinder Team