Tech stocks are leading U.S. stock futures higher this morning, as Wall Street sets its focus on earnings results from Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN). Meanwhile, the economic calendar offers up weekly jobless claims, June readings on advance trade goods, durable goods orders and the Chicago Fed’s national activity index.

With tech leading the way, Nasdaq-100 futures are up 0.71%, with S&P 500 futures lagging with a gain of 0.21% and Dow Jones Industrial Average futures bringing up the rear with a gain of 0.11%.

On the options front, volume was brisk on Wednesday, with about 17.4 million calls and 13.5 million puts changing hands. Over on the CBOE, the single-session equity put/call volume ratio rose to 0.65, pushing the 10-day moving average higher to 0.60.

Diving into Wednesday’s options activity, Advanced Micro Devices, Inc. (NASDAQ:AMD) drew heavy call volume after the company swung to a surprise second-quarter profit. Elsewhere, Facebook also saw heavy call volume heading into last night’s quarterly earnings report, and United States Steel Corporation (NYSE:X) options traders reluctantly joined the parade of call trading in the wake of blowout Q2 results.

Advanced Micro Devices, Inc. (AMD)

In the early hours on Wednesday, AMD surged more than 10% after the company posted an 18% jump in second-quarter revenue to $1.22 billion and a surprise profit of 2 cents per share, versus expectations for a breakeven quarter. AMD even boosted its full-year guidance to above Wall Street’s current targets. However, as the day wore on, AMD traders turned toward profit taking and the realization that, due to the fickle nature of the cryptocurrency market, similar results down the road may be hard to come by.

AMD settled with a respectable gain of 4.61%, with the shares dipping back below $15 by the close. Naturally, AMD options traders flooded the shares with calls yesterday, as these typically bullish bets accounted for 67% of the more than 1.4 million contracts traded.

That said, August put/call open interest ratio came in at 0.60 this morning, compared to last week’s reading of 0.44. In short, the recent attention to AMD calls versus the rise in the put/call OI ratio means that traders are closing out call positions and taking profits. Furthermore, if you got into the Aug $14/$15 bull call spread I recommended on July 14, you should have followed suit and closed out your position yesterday morning when the trade hit its maximum return of about 120%.

Facebook Inc (FB)

FB stock is set to open about 6.7% higher this morning after Facebook once again reported big jumps in earnings, revenues and users. Revenue surged 45% year-over-year to $9.32 billion, and earnings jumped 69% to $1.32 per share versus Wall Street’s targets of $9.32 billion in sales and $1.13 per share in profits. What’s more, both daily and monthly active users rose about 17% across the board, while mobile ad revenue rose to 87% of Facebook’s bottom line.

Options traders were bullish heading into last night’s report. Volume topped out at roughly 1.1 million contracts, with calls making up 66% of the day’s take. However, a closer look at the July 28 put/call OI ratio reveals a fair amount of skepticism was present for FB heading into the report. Specifically, the ratio stood at 0.53 on Monday, and had ballooned to 0.76 as of the close yesterday.

FB stock had rallied into the report, and many options traders were likely taking profits in anticipation of a sell-on-the-news event. Smart money clearly held on, and FB stock is now set to trade at new all-time highs north of $175 on the open.

United States Steel Corporation (X)

Who needs tariffs? Clearly not U.S. Steel, as the company posted a blowout second-quarter report yesterday morning. Earnings came in at $1.48 per share on revenue of $3.14 billion, rocketing past Wall Street’s expectations for earnings of just 36 cents per share on revenue of $2.98 billion. What’s more, U.S. Steel said it expects full-year earnings of $1.70 per share, well above the current consensus estimate for 84 cents.

X stock jumped more than 7% on the news, and options traders shocked by the rally reluctantly pushed into calls. Volume on the day rose to a near-term high of over 416,000 contracts, with calls snapping up 58% of the day’s take.

Surprisingly, X also has a fair amount of optimism heading into August, with the put/call OI ratio dropping to a reading of just 0.50, with calls doubling puts for the month. Still, peak August call OI of roughly 36,000 contracts rests at the now in-the-money $25 strike, which could lead to profit taking and a rise the put/call ratio.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.