U.S. stock futures are down sharply across the board this morning. In fact, futures on the Dow Jones Industrial Average have lost more than 200 points. News that Amazon.com, Inc. (NASDAQ:AMZN), Berkshire Hathaway Inc. (NYSE:BRK.A) and JPMorgan Chase & Co. (NYSE:JPM) are partnering to cut healthcare costs has sent the healthcare sector into a tailspin.

Elsewhere, U.S. bond yields continue to rise, driving up borrowing costs, and President Donald Trump will give his first State of the Union address tonight.

Against this backdrop, Dow futures have plunged 0.80%, S&P 500 futures are down 0.40% and Nasdaq-100 futures have fallen 0.42%.

Turning to the options pits, volume remained above average on Monday, but was well off of last week’s brisk pace. Overall, about 20.6 million calls and 15.7 million puts changed hands on the session. The CBOE single-session equity put/call volume ratio rebounded to 0.57. The 10-day moving average held at 0.53, it’s lowest point in nearly four years.

Taking a closer look at Monday’s options activity, Apple Inc. (NASDAQ:AAPL) drew heavy call volume ahead of earnings despite increased iPhone X demand concerns. Elsewhere, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Microsoft Corporation (NASDAQ:MSFT) both attracted considerable call volume with earnings on tap this week.

Apple Inc. (AAPL)

With earnings looming large this Thursday, Apple is seeing significant headwinds this week. Concerns continue to rise around demand and sales numbers for the iPhone X, Apple’s flagship smartphone. Those concerns ramped up yesterday when Japan’s Nikkei Business newspaper suggested Apple would halve forecasts for iPhone X shipments to 20 million in the second quarter.

But Apple stock options traders heavily focused on calls amid renewed iPhone X concerns. Volume yesterday rose to 602,000 contracts, with calls making up 69% of the day’s take.

Despite the recent rise in call activity, however, Apple’s February 2 put/call open interest ratio has risen from 0.66 on Monday last week to today’s reading of 0.68. In other words, call traders appear to be taking profits instead of ramping up positions.

As for earnings, Wall Street is expecting a profit of $3.82 per share on revenue of $85.8 billion. The whisper number rests at $3.94 per share.

Feb. 2 option implieds are pricing in a potential post-earnings move of 5.3% for Apple stock. This places the upper bound at $176.38 and the lower bound at $158.62.

Advanced Micro Devices, Inc. (AMD)

Advanced Micro steps into the earnings confessional after the close of trading this afternoon. Investors will be looking for increased demand from crypto mining as well as news on the Spectre exploit front. I’ve said before that AMD traders should treat crypto mining as icing on the cake for a longer-term bullish outlook, but demand last quarter from crypto mining may prompt a significant spike in AMD stock after the close.

Currently analysts are expecting a profit of 5 cents per share on revenue of $1.4 billion. The whisper number lies at 6 cents per share.

Options traders were call heavy ahead of the event. On Monday, volume rose to 325,000 contracts, with calls gobbling up 72% of the day’s take. The Feb. 2 put/call OI ratio arrives at 0.57, with calls nearly doubling puts among contracts most affected by tonight’s earnings.

Implieds are pricing in a potential post-earnings move of about 9% for AMD stock. This places the upper bound at $14.40 and the lower bound near $12.10.

Microsoft Corporation (MSFT)

Optimism is building on Microsoft stock as earnings approach this week. Microsoft is expected to report a profit of a profit of 86 cents per share after the close on Wednesday. Revenue is seen rising 8.9% year-over-year to $28.39 billion. The whisper number comes in at 90 cents per share.

Options volume was brisk yesterday, with more than 298,000 contracts changing hands on MSFT stock — more than double Microsoft’s daily average. Calls made up two-thirds of the day’s take. What’s more, the February 2 put/call OI ratio has fallen in the past week from 0.79 on Wednesday to today’s reading of 0.73. Calls are clearly being added at a faster clip that puts.

Finally, February 2 implieds are pricing in a potential post-earnings move of about 6% for Microsoft stock. This places the upper bound just shy of $100, while the lower bound rests at $88.30.

As of this writing, Joseph Hargett was long on Advanced Micro Devices, Inc. (AMD) stock.