U.S. stock futures are trading down slightly as traders return from the weekend. The weakness continues the damage suffered last week due to inflation pressures driving the 10-year Treasury yield to fresh seven-year highs.

Ahead of the Bell, futures on the Dow Jones Industrial Average are down 0.4% and S&P 500 futures are down by 0.27%. Nasdaq-100 futures have shed 0.36%.

In the options pits, demand for puts ran hot, causing overall volume levels to remain elevated. Specifically, about 22.5 million calls and 23.4 million puts changed hands on the session.

Over at the CBOE, the single-session equity put/call volume ratio soared to 0.84 — an eight-month high. Meanwhile, the 10-day moving average held jumped to 0.62.

Options activity ramped in these equities on Friday. Costco (NASDAQ:COST) saw renewed options interest after a disappointing earnings release soured investor sentiment. General Electric (NYSE:GE) benefited from details released that suggest its new CEO has a huge incentive to drive company shares higher. Finally, Tesla (NASDAQ:TSLA) shares were heavy into the weekend on continued drama surrounding Elon Musk.

Let’s take a closer look:

Costco (COST)

The fire blazing in COST shares was finally doused on Friday following its earnings release. Heading into the event, Costco shares were up 24% year-to-date. Though the company met expectations and analysts are still upbeat about the retailer, comments about “material weakness in internal control” left investors dissatisfied. The stock was summarily punished with a 5.5% loss.

With the price plunge, COST is back below its rising 50-day moving average for the first time since April. Deploying new positions after such a strong earnings gap is challenging. I suggest waiting for a better swing setup before trading bullish or bearish.

On the options trading front, put volume outpaced calls but not by much. Activity swelled to 480% of the average daily volume, with 89,299 total contracts traded. 55% of the trading centered on put options.

Due to the increased demand, implied volatility failed to experience much of the typical post-earnings volatility crush. Implied volatility sits at 22%, which is the 35th percentile of the one-year range.

General Electric (GE)

The CEO shakeup in GE continues to breath new life into what was once a mainstay of the stock market. With Friday’s pop, GE topped off its best week of gains since 2009. And this morning, it’s receiving another boost in the form of an upgrade by Barclay. Shares are up 2% in pre-market trading.

Analyst Julian Mitchell cited the large reduction in earnings guidance and dividend cuts that are already priced in coupled with optimism over the newly anointed CEO as reasons for boosting his outlook on the ailing industrial giant.

The ongoing strength in GE shares has lifted the stock back above its 50-day moving average for the first time since July. And while the stock has a long way to go before righting what appears a bearish ship, last week was a fantastic start.

On the options trading front, call volume ruled the day once again. Participation remained heavy at 213% of the average daily volume, with 643,762 total contracts traded. 55% of the total originated from calls.

After last week’s large price gap, implied volatility has remained elevated. At 39%, it’s perched at the 58% percentile of the one-year range.

Tesla (TSLA)

Unless someone takes Twitter away from Elon Musk, Tesla may well remain a fixture in this daily feature. Angst over Elon’s latest tweet jabbing at the SEC sent the stock sliding 7% on Friday. After engaging in a bit of name calling by dubbing the SEC the “Shortseller Enrichment Commission,” he turned his ire to short sellers calling them “value destroyers.”

Given last week’s price plunge, TSLA stock is fast approaching its six-month low. With the price now below all major moving averages, you should view rallies as suspect.

On the options trading front, put volume remained the driver. Activity remained high at 191% of the average daily volume, with 470,515 total contracts traded. 54% of the trading centered on put options.

Volatility expectations are now officially through the roof. Or, at least, at the roof. At 98%, the implied volatility is now at the 100th percentile of the one-year range.

As of this writing, Tyler Craig didn’t hold positions in any of the aforementioned securities. Want insightful education on how to trade? Check out his trading blog, Tales of a Technician.