Aflac Inc (NYSE:AFL) stock was last seen down 3.6% to trade at $104.83, after the insurance company posted lower-than-expected first-quarter earnings and revenue amid investment losses, despite impressive growth in Japan. A short-term rally could be in the works, though, as the stock is flashing a historically bullish signal. 

Shares are within one standard deviation of their 50-day moving average (representing half a year of trading). Per Senior Quantitative Analyst Rocky White, AFL was above this this trendline in at least eight of the last 10 trading days and also spent 80% of the last six months above it. Within these parameters, seven other signals occurred in the past five years. AFL was higher one month later 71% of the time, averaging a 4% gain.     

Should AFL move higher, analyst bull notes could provide tailwinds. Of the 16 analysts covering Aflac stock, 13 still carry a "hold" or worse rating, leaving plenty of room for upgrades. 

With May kicking off, the stock market maxim "sell in May and go away" is top of mind, especially after a lackluster start to 2025. Schaeffer's Senior Quantitative Analyst Rocky White already identified some of the names that usually buck this trend, but there are even more solid opportunities this month for those looking to build up their portfolios.

Semiconductor giants Applied Materials Inc (NASDAQ:AMAT) and Broadcom Inc (NASDAQ:AVGO) are featured on White's list of best S&P 500 (SPX) stocks to own in May, dating back 10 years. AMAT and AVGO settled May higher nine times over the last decade, averaging 6.3% and 7.2% gains, respectively.

AMAT was last seen trading near breakeven at $150.77, and carries a 21.9% year-over-year deficit. The equity just bounced off an April 4, 52-week low of $123.95, however, to conquer support at the 20-day moving average -- a trendline that is containing today's pullback.

Meanwhile, AVGO has already started its May ascent, up 3.8% to trade at $199.81 -- its highest level since March -- amid upbeat earnings results from Meta Platforms (META) and Microsoft (MSFT). The shares boast a 61% year-over-year lead, and are pacing for their seventh daily gain in eight sessions.

Options traders are divided on the equities. AMAT's 50-day put/call volume ratio of 1.96 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 97% of readings from the past year, signaling an appetite for bullish bets.

These traders are less confident in AVGO, though. This is per its 10-day put/call volume ratio at the ISE, CBOE, and PHLX that stands higher than all other annual readings. This means an unwinding of pessimism could create additional tailwinds for Broadcom stock in the weeks ahead.

eBay Inc (NASDAQ:EBAY) is seeing unusual options activity today, with 18,000 calls and 15,000 puts traded so far -- 5 times the average intraday volume. The weekly 5/2 71-strike call is seeing the most action, followed by the 68-strike call from the same series, with new positions being opened at both strikes.

The surge in activity follows news that CFO Steve Priest will step down in May, to be replaced by Peggy Alford, a current executive at PayPal (PYPL). The company also reported better-than-expected revenue for the first quarter and issued an upbeat second-quarter forecast. However, eBay cautioned that it remains vulnerable to increased tariff costs and lingering trade tensions tied to President Trump’s policies.

Today’s rush of call buying marks a notable shift in sentiment. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), eBay stock’s 10-day put/call volume ratio of 7.86 ranks higher than 99% of readings from the past year, suggesting puts have been picked up at a much faster-than-usual pace in recent weeks.

Despite the upbeat headlines and bullish options flow, EBAY is trading lower this afternoon. The stock opened higher, briefly topping the $70 level for the first time since early March, but was last seen down 1% at $67.51 -- pulling back from its year-to-date gain of over 10%. Technically, the 126-day moving average near $65 remains a key area of support, having helped contain multiple pullbacks throughout April.

Embracing the usage of options trading provides a critical layer of diversification for any serious and active trader. By incorporating options, investors can achieve exposure to a broader range of market scenarios and asset classes without directly holding the underlying securities. This diversification helps mitigate risk by balancing the portfolio with instruments that may behave differently under various market conditions.

2024 was another record-breaking year for options trading. Last year marked the fifth straight year that overall options trading volume on U.S. exchanges rose to a new all-time high. As reported by the Options Clearing Corporation, the volume on equity options surged to nearly 11.2 billion contracts in 2024. This represents an increase of 10.7% year-over-year. 

In this article, we will provide you with a guide on how to choose the best broker for options trading. We will provide an overview of options trading, how brokers play a role in options trading, things to consider when choosing an options trading broker, and a quick overview of the most popular brokers in the United States.

Understanding Options Trading

Options trading involves the buying and selling of contracts that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before or on a specific date.

This type of trading allows investors to leverage their positions, hedge against potential losses, or speculate on market movements with relatively lower capital compared to stock trading. Unlike traditional stock trading, options provide flexibility through strategies that can profit in bull, bear, or even sideways markets. Additional benefits include the ability to generate income through strategies like covered calls and the use of options as a tool for risk management.

The Role of Brokers in Options Trading

Brokers play a pivotal role in enabling retail traders to access the options market. Brokers act as intermediaries, connecting traders to exchanges and executing their trades efficiently. Retail traders rely on brokers for critical services such as trade execution, access to a trading platform, and the ability to manage positions effectively.

Many brokers also provide additional resources like real-time market data, advanced charting tools, and strategy simulators to enhance the trading experience.

Factors to Consider When Choosing a Broker for Options Trading

Cost

Cost structures of brokers often vary and can significantly impact a trader’s profitability. Most brokers charge a combination of commissions per trade and fees for options contracts, though many have shifted to commission-free structures with nominal per-contract fees. Additionally, brokers may offer tiered pricing models that provide discounts based on trading volume.

Fees, including commissions and per-contract charges, directly impact profitability and should align with your trading frequency and volume.

Platform

A user-friendly platform with advanced tools can make a significant difference in executing and managing trades efficiently. Platform usability can save time and reduce errors, especially for complex options strategies

Customer Support

Reliable and responsive support is crucial, especially for resolving technical or account-related issues quickly. Strong customer service ensures that traders can focus on their strategies without unnecessary disruptions. Even a disruption of 10 minutes that could have been handled in under 5 minutes can have a major impact on your ability to capitalize on opportunities when they present themselves.

Education

Comprehensive educational resources, such as tutorials, webinars, video archives, and easy-to-understand breakdowns, help traders improve their knowledge and strategies. Access to these resources is particularly valuable for new traders seeking to build confidence.

Awards/Recognition

There are a number of media companies that release comprehensive broker reviews, complete with awards to category winners, each year. Some of the largest and most well-regarded broker reviews come from StockBrokers.com, Investopedia, NerdWallet, Barron's, and Benzinga.

The Top-Rated Brokers for Options Trading

• Tastytrade: Known for its educational content and platform designed specifically for options traders, Tastytrade won the "Best Options Trading Platform" award in 2024.

• Interactive Brokers: Offers low-cost trading with advanced tools and analytics, making it ideal for experienced traders. Recognized with the "Best Overall Broker" award in 2024.

• Charles Schwab: Combines a user-friendly platform with extensive research and educational resources, earning high marks for customer satisfaction.

• TD Ameritrade (Thinkorswim): Offers a robust platform with sophisticated charting and analysis tools, perfect for both novice and advanced traders.

• E*TRADE: Provides a balanced platform with competitive pricing and excellent customer service, frequently highlighted in industry reviews.

Auto-Trading for Options Traders

Auto-trading refers to the use of algorithms or automated systems to execute trades on behalf of the trader based on pre-set criteria or strategies. This feature is especially useful for options traders who want to implement complex strategies, such as spreads or straddles, without constant manual input. Auto-trading can help reduce emotional trading decisions and ensures that trades are executed with speed and precision, even during volatile market conditions.

Several companies offer auto-trading services for options traders. Interactive Brokers provides robust algorithmic trading tools that can be customized for various strategies. TD Ameritrade (Thinkorswim) includes automated features and script-based trading for advanced users. TradeStation is another popular platform, offering auto-trading capabilities with its rule-based strategy development tools. These services cater to both retail and professional traders, enhancing efficiency and consistency in trading execution.

The Bottom Line

Choosing the right broker is a critical step in preparing to trade options successfully. The broker you select will influence your trading experience through costs, platform functionality, and the availability of resources and support. By carefully evaluating factors like fees, platform usability, and regulation, traders can align their choice with their trading goals and strategies.

A well-chosen broker not only enhances your ability to execute trades effectively, but also provides the tools and knowledge needed to navigate the complex world of options trading.

Fresh off monthly losses, the Dow Jones Industrial Average (DJI) and Nasdaq Composite Index (IXIC) are both up over 400 points this afternoon, while the S&P 500 Index (SPX) sits firmly higher as well. This morning's Big Tech earnings put the spotlight back on the artificial intelligence (AI) trade, helping the market brush off higher-than-expected weekly jobs data. At this point, the DJI and SPX are both headed for an eighth-straight daily win. 

Continue reading for more on today's market, including: 

• Don't miss these 2 'Magnificent 7' quarterly results. 
• Apple stock on track to snap 7-day win streak. 
• Plus, options traders target EBAY; and two stocks staging large post-earnings swings.

eBay Inc (NASDAQ:EBAY) is seeing elevated options activity this afternoon, with 14,000 calls and 8,421 puts traded so far -- 5 times the average intraday volume. The weekly 5/2 71- and 68-strike calls are seeing the most activity, with new positions opening at the weekly 5/2 68-strike put. The e-commerce name posted better-than-expected first-quarter earnings and revenue, and announced a new CFO. At last glance, EBAY was up 0.8% at $68.71. 

Advanced Energy Industries Inc (NASDAQ:AEIS) is one of the best-performing stocks on the Nasdaq this afternoon, last seen 113.8% higher at $110.90. The electrical name reported better-than-expected first-quarter earnings and revenue results, pushing the shares above a slew of moving averages on the charts, including the 200-day trendline. Year to date, the equity is down 2.9%. 

Arvinas Inc (NASDAQ:ARVN) stock, on the other hand, is down 25.7% at $7.13, despite better-than-expected first-quarter results, after the company announced it was laying off 33% of its workforce and terminating two phase 3 trials. Moving back toward its April 9 record low of $5.93, the equity is down 62.8% year to date. 

Apple Inc (NASDAQ:AAPL) stock was last seen down 1.1% at $210.15, after a U.S. federal judge ruled that the iPhone maker willfully violated a 2021 court order from the Epic Games case regarding App Store fees. According to the court filing, Apple lied to the court and is potentially exposed to criminal contempt proceedings.

Should these losses hold, AAPL will snap a seven-day win streak -- its longest rally since August 2024. The stock seems to be struggling to break out above the $210 level, which provided support in March but rejected the shares in mid-April. Year to date, the equity is down 15.5%. 

The "Magnificent 7" member will also report earnings after the close today, following Microsoft (MSFT) and Meta Platforms (META), which are both rising after their results. Apple stock has closed lower in five of its last eight post-earnings sessions, including the last two. Over the past two years, the shares have averaged a 2.4% swing -- regardless of direction -- following earnings. This time around, the options pits are pricing in a larger 6% next-day move.

When weighing in on AAPL's next move, options look like a good way to go. The stock's Schaeffer's Volatility Scorecard (SVS) of 85 out of 100 means it has exceeded options traders' volatility expectations over the past year, though investors should be wary of a potential post-earnings volatility crush. 

Shares of Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META) are surging after earnings -- and dragging the broader market higher with them. Strong quarterly results from the two Big Tech giants helped ease investor concerns over a potential slowdown in artificial intelligence (AI) spending, despite ongoing macroeconomic uncertainty. In response, the broader market is soaring.

Microsoft Impresses with Cloud Growth and Bullish Outlook

Microsoft stock is up 8.6% at $429.44 at last glance, after the tech giant posted fiscal third-quarter earnings of $3.46 per share on revenue of $70.07 billion, topping Wall Street estimates of $3.20 per share and $68.38 billion, per LSEG. Revenue rose 13% year-over-year, with Microsoft’s cloud business -- including Azure -- bringing in $26.8 billion, a 21% jump that beat internal forecasts. The company also issued upbeat guidance across all major business units for the current quarter.

In response, MSFT is on track for its best single-day percentage gain since April 9, and is pacing for its third-straight weekly win. The stock is also trading at its highest level since late January and has reclaimed its year-to-date breakeven mark -- now up 2.7% in 2025.

No fewer than 16 analysts hiked their price targets, the highest of which came from Jefferies, to $550. Meanwhile, Oppenheimer assumed coverage on MSFT with a "perform" rating.

Options volume is exploding on Microsoft stock. So far, 377,000 calls and 216,000 puts have traded -- 6 times the average intraday volume. New positions are being opened at the six most active contracts, led by the weekly 5/2 440-strike call.

Meta Stock Jumps as Ad Revenue and AI Spending Surge

Meta Platforms stock is 4.5% higher at $573.51, after the Facebook and Instagram parent reported first-quarter revenue of $42.31 billion, up 16% year-over-year and above expectations. While user growth and ad impressions came in line with forecasts, ad pricing rose 10% from a year earlier -- more than double projections. Meta also raised its full-year capital expenditures to a range of $64 billion to $72 billion, driven largely by increased investment in AI infrastructure.

META opened the session at $592.95 but has since pulled back slightly. The stock is still trading at its highest level since mid-April and is pacing for its third-straight weekly gain, as well as its best single-session percentage gain since April 9. Year-to-date, Meta Platforms stock remains down 2.1%, though it boasts a 30.6% lead over the last 12 months.

At least 14 analysts raised their price targets on META, the highest of which came from Rosenblatt Securities, to $918. However, not all updates were bullish -- Wells Fargo cut its price target to $664 from $752, while four other firms also adjusted to the downside.

Meta Platforms stock is also seeing heavy options activity. More than 349,000 calls and 189,000 puts have crossed the tape -- 3 times the average intraday pace. Traders are opening new positions at the top three most active contracts, with the weekly 5/2 600-strike call drawing the most attention.

McDonald's Corp (NYSE:MCD) stock is down 1.3% to trade at $315.58 at last check, after the fast food giant posted a revenue miss for the fiscal first quarter. While the company beat profit expectations, same-store sales fell for the second-straight quarter in the U.S. for the biggest tumble since Covid-19 amid bad weather and consumer caution.

MCD still sports an 8.9% year-to-date lead, however. The $310 level looks poised to contain any additional pullbacks, while the 10-day moving average is also acting as support. The security is also not too far from its March 10, record high of $326.32, though it has remained below $320 since.

Short-term options traders are overwhelmingly bearish, per McDonald's stock's Schaeffer's put/call open interest ratio (SOIR) of 1.41 that ranks in the top percentile of readings from the past 12 months. In other words, puts have been getting picked up at a quicker-than-usual rate.