Defensive Bets Flood Post-Earnings Options

Earnings-driven selloffs this week are pulling options markets into defensive territory. Three names stand out: TRIP, PAYC, and RH.

Tripadvisor cratered 24% after results. Its short interest sits at 33.4% of free float. RSI dropped to 30.6, deep in oversold territory. Options chains now run across eight expiry dates out to January 2027. That breadth suggests traders are positioning for prolonged weakness, not a quick bounce.

RH tells a similar story. Short interest stands at 38.6% of free float, with ORTEX data flagging an increasingly defensive options posture this week. DTC sits at 3.1 days. The luxury furniture retailer is down 27% year-to-date.

Paycom fell 10% after its earnings print. RSI is at 41 and sinking. Options activity concentrated in the November 20 expiry, the nearest monthly date. That suggests near-term directional bets rather than longer hedging programmes.

Semiconductors carry the heaviest negative options volume in the broader market. Micron Technology has an RSI of 31 and leads the sector for bearish options flow. AMD and NVDA follow closely, with RSIs at 38 and 31 respectively.

On SPY and QQQ, near-daily expiry activity has picked up sharply. That pattern typically reflects hedging around macro data. October US nonfarm payrolls hit a record 159,293 thousand, the highest October reading since 1997 per ORTEX alt data. Wage growth also reached an October record. Strong jobs data complicates the rate outlook, keeping macro hedges in demand heading into next week.