U.S. stock futures are trading broadly higher as bargain hunters emerge following yesterday’s bloodbath. This week’s deluge of earnings reports has done little to turn investor sentiment around. Negative earnings surprises are being punished, but so too are positive ones.

Ahead of the opening bell, futures on the Dow Jones Industrial Average are up 0.44% and S&P 500 futures are higher by 0.51%. Nasdaq-100 futures have added 0.89%.

In the options pits, put volume shot through the roof yesterday, helping to drive overall volume well above average levels. Specifically, about 22.5 million calls and 26.4 million puts changed hands on the session.

The mad dash for puts wasn’t as extreme over at the CBOE. The single-session equity put/call volume ratio rose to 0.71 which is below the three other large spikes seen this month. The 10-day moving average held its ground at 0.67.

Options activity was once again heaviest in stocks stepping up to the earnings plate. AT&T (NYSE:T) saw renewed options interest after posting disappointing earnings. Traders were jockeying for positions ahead of Microsoft (NASDAQ:MSFT) earnings. Finally, Micron (NASDAQ:MU) options were hot, as semiconductors lie at the center of the growth stock unwind.

Let’s take a closer look:

AT&T (T)

Shareholders hoping AT&T would follow in the footsteps of Verizon’s rousing rally post-earnings were disappointed yesterday. After reporting mixed results, traders slammed the stock by over 8%. T now sits a pebble toss from a 52-week low.

For the third quarter, AT&T earned 90 cents per share on revenue of $45.7 billion. Analysts expectations ahead of the event were 94 cents per share on $45.58 billion.

Yield hunters will note the silver lining of the selloff is the now juicy 6.59% dividend yield.

On the options trading front, calls slightly outpaced puts on the day. Activity swelled to 443% of the average daily volume, with 369,992 total contracts traded, and 55% of the trading came from call options.

With all the market uncertainty, implied volatility on T actually lifted on the day to 30% or the 96th percentile of its one-year range. Even with the earnings cat out of the bag, traders continue to price-in volatile swings. The expected daily move for T is 1.9%.

Microsoft (MSFT)

Traders were jockeying for positions ahead of last night’s earnings release from Microsoft. Mister Softee has been one of the stronger tech stocks during the market correction, but on Wednesday sellers finally clinched a victory. Shareholders worrying that the deluge was a sign of a looming earnings miss actually went to bed happy last night.

After the closing bell, Microsoft reported a solid quarter, beating on both the top and bottom line. The technology titan posted earnings of $1.14 per share which bested analysts estimates of 96 cents by a wide margin. Revenue came in at $29.08 billion versus expectations of $27.90 billion.

MSFT shares rally in the after-hours session and are poised to open 3.5% this morning which will recover much of yesterday’s lost ground.

On the options trading front, calls won the day. Activity lifted to 328% of the average daily volume, with 515,878 total contracts traded. Calls accounted for 61% of the day’s take.

MSFT entered earnings with lofty volatility expectations. Implied volatility is at 50% or the 100th percentile of its one-year range. I fully expect it to recede today given the tame up-gap.

Micron (MU)

The reversal of fortune for growth stocks continues to take its toll. And nowhere has the pain been felt more than semiconductors. The unwinding in Micron accelerated Wednesday with the stock down another 8.5% on heavy volume. That brings the total peak-to-trough decline since the May high to 45%.

On the options trading front, calls outpaced puts on the day. Activity lifted to 176% of the average daily volume, with 339,636 total contracts traded. Calls were 59% of the total.

This week’s swoon is lighting a fire under implied volatility which now sits at 57% or the 73rd percentile. Traders are now pricing in daily moves of 3.6%.

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.