U.S. stock futures are are in rally mode this morning. The major market indices are on course for another day of record highs, especially the Dow Jones Industrial Average. Strong earnings from 3M Co (NYSE:MMM) and Caterpillar Inc. (NYSE:CAT) had Dow futures up more than 100 points at last check.

Heading into the open, Dow futures are up 0.37%, S&P 500 futures are have added 0.29% and Nasdaq-100 futures are up 0.61%.

Turning to the options pits, volume was massive on Wednesday. More than 29.1 calls and 20.1 million puts changed hands on the session. The CBOE single-session equity put/call volume ratio fell once again to 0.53. The 10-day moving average held at three-year lows of 0.54.

Taking a closer look at Wednesday’s options activity, Alibaba Group Holding Ltd (NYSE:BABA) drew heavy call volume. Alibaba rose on bullish analyst commentary and news it was in collaboration talks with grocery giant Kroger Co (NYSE:KR).

Elsewhere, Netflix, Inc. (NASDAQ:NFLX) options perked up after Baidu, Inc. (NYSE:BIDU) said it would license more content from the company. Finally, Petróleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) surged after turnaround CEO Pedro Parente said he might stay with the company after Brazil’s presidential election.

Alibaba Group Holding Ltd (BABA)

Alibaba options activity surged on Wednesday, and BABA stock jumped 1.7%. The main driver was a bullish note from Oppenheimer praising Alibaba’s core business as well as its “New Retail” initiative.

Speaking of retail initiative, Alibaba is also reportedly in talks to collaborate with U.S. grocery giant Kroger. Talks are in the initial stages, a source familiar with the matter told Reuters.

BABA options volume rocketed higher as a result. More than 489,000 contracts traded on Alibaba stock yesterday, more than doubling the stock’s daily average. Calls gobbled up 74% of the day’s take.

Despite the added call attention, Alibaba’s February 2 put/call open interest ratio has risen from 0.32 on Monday to 0.39 today. Alibaba will report earnings one week from today, making the Feb. 2 series the most affected by the report.

Netflix, Inc. (NFLX)

Fresh off a blistering fourth-quarter earnings report, Netflix continued to march higher on Wednesday. Options activity was also increasingly bullish for Netflix stock.

Baidu added fuel to the fire after President Ya-Qin Zhang hinted at “a lot more exciting deals” for its video streaming service iQiyi, including additional content from Netflix. While not a clear path to the Chinese market, continued collaboration with Baidu is helping Netflix get its foot in the door of the second largest economy in the world.

NFLX options traders were call heavy once again on Wednesday. Volume topped 333,000 contracts, with calls accounting for 57% of the day’s take — which is actually high for Netflix.

However, much of this activity may have been profit taking. Netflix’s February put/call OI ratio rose from Tuesday’s reading of 1.29 to 1.33 today. Profit taking is to be expected following Netflix stock’s run and it will be interesting to see if these bulls reestablish themselves in the March or April series going forward.

Petróleo Brasileiro SA Petrobras (ADR) (PBR)

Petrobras stock surged more than 8.5% on Wednesday after “turnaround” CEO Pedro Parente indicated he might stay with the company after the Brazilian election. Parente has pulled Petrobras back from the brink following years of corruption, trimming massive debts and settling a class action case and expanding it’s deep-water production fleet.

“If I have the same conditions I have now, I may consider” staying, Parente in a Bloomberg TV interview, “What concerns me is that there is no political interference.”

The news and PBR stock’s surge prompted a groundswell of options activity. Volume soared to 245,000 contracts, more than quintupling the stock’s daily average. Calls accounted for a whopping 88% of the day’s take.

What’s more, short-term options traders are even more bullish on Petrobras stock. The February put/call OI ratio comes in at a lowly 0.13, meaning that calls are more than seven times as popular as puts in the front-month series.

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