After rallying to close well off the lows yesterday, U.S. stock futures are trading mixed this morning.

This is the busiest earnings week of the season, with a bevy of big-hitters stepping up to the plate. This morning’s release from Boeing (NYSE:BA) is setting the early tone for the Dow Jones.

Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.1% while S&P 500 futures are lower by 0.18%. Nasdaq-100 futures have shed 0.09%.

In the options pits, overall volume remained elevated with trading balanced between calls and puts. Specifically, about 22.9 million calls and 22.3 million puts changed hands on the session.

At the CBOE, the single-session equity put/call volume ratio bumped higher to 0.61. The 10-day moving average held its ground at 0.67.

Earnings continued to take center stage for options traders yesterday. McDonald’s (NYSE:MCD) delivered a mouthwatering quarter to shareholders. Verizon (NYSE:VZ) followed suit with a strong report of its own. Meanwhile, Caterpillar (NYSE:CAT) was beaten senseless despite posting its best Q3 earnings in history.

Let’s take a closer look:

McDonald’s (MCD)

In an environment where Dow stocks are being beaten down, McDonald’s giant breakout Tuesday is a rare treat. After smashing earnings estimates, the Street carried shares of the ubiquitous restaurant chain to within a whisker of fresh all-time highs.

For the third quarter, McDonald’s reported earnings per share of $2.10 and revenue of $5.37 billion. The top- and bottom-line beats were enough to send the stock 6% higher by day’s end on strong volume.

Given that the relative strength was driven by powerful earnings magic, MCD deserves a top spot among your bullish watch list.

On the options trading front, calls were the hot ticket. Activity skyrocketed to 544% of the average daily volume, with 89,974 total contracts traded. 58% of the total came from call options.

With earnings in the rearview mirror and MCD stock’s uptrend resolutely confirmed by the price breakout, implied volatility is sinking like a stone. At 21%, it rests at the 41st percentile and is pricing in daily moves of 1.3%.

Caterpillar (CAT)

Caterpillar stock was taken out at the knees Tuesday after its earnings report, and forward guidance failed to satisfy the Street. With sentiment souring in stock land, many investors are using this quarters earnings releases as an excuse to abandon ship.

CAT reported $2.88 earnings per share and revenue of $13.51 billion. Both topped expectations, but comments on how tariffs are driving costs higher and a failure to raise 2018 guidance drove the stock down over 7% on a groundswell in volume.

On the options trading front, calls outpaced puts despite the day’s drubbing. Activity ramped to 339% of the average daily volume, with 131,547 total contracts traded. Calls accounted for 60% of the day’s take.

Implied volatility remained hot as a pistol for one simple reason. Although the uncertainty of earnings is now past, the massive price swings in CAT of late are keeping option premiums pumped. The implied volatility rests at 37% or the 79th percentile of its one-year range. That means options traders are pricing-in daily moves of 2.4%.

Verizon (VZ)

Verizon shares were already holding firm during this month’s bloodbath. The resilience was due in large part to defensive sectors like telecoms or consumer staples exhibiting relative strength while offensive sectors visited the wood chipper. Now VZ has a second, even stronger, reason to stay aloft — earnings.

Yesterday’s Q3 report gave the Street something to cheer about. Earnings came in at $1.22 per share, topping estimates by 3 cents. Revenues followed suit arriving above analysts estimates. The beat was good enough to send the stock to a fresh 17-year high.

On the options-trading front, calls won the day. Activity swelled to 301% of the average daily volume, with 104,588 total contracts traded. Calls accounted for 58% of the total.

The implied volatility for Verizon is mirroring McDonald’s. The price breakout confirms buyers are in control and price swings are likely to remain subdued. The post-earnings vol crush is commencing, and implied volatility has already fallen to 20% or the 37th percentile. Options traders are pricing in daily moves of 1.3%.

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.