Utility stock AES Corp (NYSE:AES) is surging today, up 16% at $12.84 at last glance, after reports that the company is exploring sale options amid takeover interest. The power sector has been drawing acquisition attention lately due to artificial intelligence (AI) and cryptocurrency mining. 

Headed for its biggest single-day percentage gain since May 8, 2009, AES earlier hit its highest levels since March of this year before paring gains. There are several layers of potential resistance the stock is grappling with today: the year-to-date breakeven level, the 200-day moving average, and the $12.60 level -- the latter of which rejected the shares in April and May. 

Call traders are blasting AES after the news. So far, 36,000 calls have been exchanged -- 7 times the call volume typically seen at this point -- in comparison to 2,616 puts. The weekly 7/11 11.50-strike call is the most popular, followed by the 11-strike call in the same series. 

Calls have been popular over the last 10 weeks, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AES' 50-day call/put volume ratio of 11.37 ranks higher than 80% of readings from the past year. 

AES tends to outperform options traders' volatility expectations, too. This is per its Schaeffer's Volatility Scorecard (SVS) reading of 96 out of 100. 

The shares of Schaeffer's 2025 Top Stock Pick Bloom Energy Corp (NYSE:BE) are up 12.5% to trade at $27.33 at last check, on the heels of an upgrade from J.P. Morgan to "overweight" from "neutral" and price-target hike to $33 from $18. The analyst noted fuel cell tax credits, higher factory absorption, as well as incremental pricing power.

There's room for additional firms to strike a bullish tone, as 11 of the 20 in question still sport a "hold" or worse rating. Plus, the 12-month consensus target price of $23.56 is a 14.2% discount to current levels. A short squeeze may also come into play, as 24.1% of the stock's available float is sold short, which is equivalent to nearly nine days worth of pent-up buying power.

The security is now pacing for its best single-day percentage gain since November, and hit its highest level since February right out of the gate. Support from the 20-day moving average has been guiding BE higher since May, helping it break past resistance at $24 last week. So far in 2025, the stock added 23.5%.

Options bulls are piling on today, with 9,524 calls across the tape -- 4 times the volume typically seen at this point -- compared to just 1,496 puts. The most popular contract is the July 28 call.

Premiums can still be had for a bargain, per Bloom Energy stock's Schaeffer's Volatility Index (SVI) of 33% that sits in the 12th percentile of readings from the past 12 months. This implies options players are pricing in lower-than-usual volatility expectations.

Beverage chain Starbucks Corp (NASDAQ:SBUX) is up 1.6% to trade at $126.15, after CNBC reported the company's China leg is attracting bids of up to $10 billion. The equity would retain a 30% stake, with offers coming in from big names such as Centurium Capital, Hillhouse Capital, and Carlyle Group. 

Starbucks stock has been choppy on the charts this summer, with recent support stemming from its ascending 20-day moving average. Today's pop has SBUX trading at its highest level since April 2 and creating some separation from its year-to-date breakeven level. Over the past 12 months, the shares have climbed 30.5%.

Options traders have been bullish on the security. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OM X PHLX (PHLX), SBUX's 50-day call/put volume ratio of 2.11 ranks in the 98th percentile of annual readings. Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.88 stands in the 12th percentile of readings from the past 12 months. 

Options are looking affordable as well. This is per SBUX's Schaeffer's Volatility Index (SVI) of 29%, which sits in the 16th percentile of its annual range. This indicates options traders are pricing in low volatility expectations. It's also worth noting that the equity has tended to outperform these expectations during the past year, per its Schaeffer's Volatility Scorecard (SVS) of 98 out of 100. 

Retail stock Macy's Inc (NYSE:M) was last seen up 1.1% at $12.59, and running into several layers of resistance on the charts. The $12.60 level has kept a lid on gains for the last couple months, while overhead pressure at the 100-day moving average has moved in as well -- a trendline that has preceded downturns in the past. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, the stock is within 0.75 of the 100-day moving average's 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, five other signals occurred in the past three years. M was lower one month later 80% of the time after those instances, averaging a 7.8% loss. A move of similar magnitude would have the shares at $11.61. 

Macy's stock has struggled to rally off its April 8, four-year low of $9.76. Since the start of the year, the shares are down roughly 26%. 

An unwinding of optimism amongst options traders could provide additional headwinds. M's 10-day call/put volume ratio of 7.47 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 86% of readings from the past year. 

HSBC handed out a round of bank downgrades this morning, cutting JPMorgan Chase & Co (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) to "reduce" from "hold," and Bank of America Corp (NYSE:BAC) shares to "hold" from "buy."

The updates come as the three financial services giants prepare for earnings next week, with JPMorgan set to report second-quarter results before the open on Tuesday, July 15, while Bank of America and Goldman Sachs are slated to follow with premarket reports on Wednesday, July 16.

JPM was last seen down 2.2% to trade at $285.40, but still sports a 19.8% year-to-date lead as it extends a pullback from a July 3, record high of $296.40. The shares are fresh off their third-straight weekly gain, as well as their best quarter since December 2020. 

GS is down 1.6% to trade at $699.85 at last glance, cooling from its own July 3, all-time high of $726 and best month since November 2020. Over the last 12 months, GS added more than 51%.

BAC is down 2.5% at $47.44 at last check, on track for its worst single-day percentage loss since May 21 after securing a July 3, four-year high of $49.30. The equity recently nabbed its third-straight positive month, however, and sports a 35.5% three-month lead.

JPM, BAC, and GS all have a solid post-earnings track records, finishing more than half of their last eight reports higher. All three stocks averaged next-day swings of more than 2%, regardless of direction. This time, the options market is pricing in bigger moves of over 4% for each equity.

Solar stocks are sliding after the White House's latest moves to eliminate clean energy subsidies. President Trump ordered the ending of clean-electricity tax credits within 45 days of the Big, Beautiful Bill going into effect -- likely before the end of this year.

Take a closer look with us at two of the names affected. Sunrun Inc (NASDAQ:RUN) was last seen down 9.3% to trade at $10.08, while shares of First Solar Inc (NASDAQ:FSLR) were down 4.5% at $169.08 at last check. 

Sunrun stock is brushing off an upgrade from Keybanc to "sector weight" from "underweight." The firm cited multiple near-term tailwinds, including ongoing market consolidation following the bankruptcy of other competitors.

RUN saw massive bear gaps in both May and June that were followed by extended rebounds, and finally recovered from both last session before today's downturn. Year to date, the equity is up 8.2%. 

First Solar stock also staged a mid-June bear gap after Trump's spending bill passed through the Senate, which preceded an extended rally until today's drop. FSLR is moving back into negative territory for 2025 amid today's price action, down 3.2% year to date. 

Data center Vertiv Holdings Co (NYSE:VRT) is charging 2.9% higher to trade at $129.93 this morning, after landing an upgrade at Melius Research to "buy" from "hold." The brokerage said the company will benefit from supplying the power grids in the artificial intelligence (AI) race that seems to be "back on track."

VRT has been climbing higher on the charts since touching an April 7 annual low of $53.60. An added boost from the ascending 20-day moving average and a post-earnings surge now has the equity 13.5% higher for 2025 and almost 40% higher year-over-year. 

Options are looking affordable as well. This is per VRT's Schaeffer's Volatility Index (SVI) of 51%, which sits in the 8th percentile of its annual range. This indicates options traders are pricing in low volatility expectations.

It's also worth noting that the equity has tended to outperform these expectations during the past year, per its Schaeffer's Volatility Scorecard (SVS) of 82 out of 100.