United Parcel Service Inc (NYSE:UPS) announced better-than-expected third-quarter earnings and revenue before the open today, citing job cuts and cost-cutting initiatives. The company also issued an upbeat fiscal-fourth quarter revenue outlook, sending the shares soaring in response.
UPS was last seen up 10.4% to trade at $98.45, heading for its best day since February 2022. Further removing itself from an Oct. 14 five-year low of $82, the stock is looking to conquer long-term resistance at the 100-day moving average. Year to date, the equity is down 21.9%.
Options traders have been much more optimistic than usual. This is per the security's 50-day call/put ratio of 3.27 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 84th percentile of annual readings.
The options pits are already buzzing in response to earnings. So far today, 58,000 calls and 28,000 puts have exchanged hands -- 14 times the volume typically seen at this point. Most active is the January 16, 2026 105-strike call, while positions are being sold to open at the weekly 10/31 95-strike put.
