Company Performance - Johnson & Johnson (NYSE: JNJ) stock is down 1.2% to $188.54 despite beating earnings and revenue expectations for Q3 [1] - The company announced a spin-off of its orthopedics business, raised its full-year forecast, and issued a dividend for the fiscal fourth quarter [1] Stock Movement - Shares are taking a breather from their record high of $192.10 on October 9, following a bounce off long-term support at the 40-day moving average [2] - The stock has a 32% year-to-date lead and appears to have found support around the $185 region [2] Options Market Activity - Calls are outpacing puts, but options traders are exhibiting more pessimism than usual, with the stock's 50-day put/call volume ratio higher than 80% of annual readings [3] - Options volume is running at triple the intraday average, with 10,000 calls and 5,143 puts exchanged, the most active being the October 192.50 call [4] Volatility and Pricing - Options are reasonably priced, with a Schaeffer's Volatility Index (SVI) of 21% ranking in the low 27th percentile of its annual range, indicating low volatility expectations [5] - Johnson & Johnson tends to outperform volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100 [5]

Group 1 - Brinker International Inc, the parent company of Chili's, saw its shares rise by 3.4% to $164.59 following an upgrade to "outperform" from "in-line" by Evercore ISI, with a new price target of $210, up from $190, driven by sustainable near-term growth and improving customer satisfaction [1] - The stock has been recovering from August lows near $150 and is currently experiencing its best daily performance in over a week, having briefly surpassed the $170 level for the first time since July, resulting in a year-to-date gain of 25% [2] - Put traders have been increasingly active over the past 10 weeks, with a 50-day put/call volume ratio of 1.52, ranking in the 96th percentile of readings from the past 12 months [3] Group 2 - Options traders are anticipating relatively low volatility for Brinker International's stock, as indicated by a Schaefer's Volatility Index (SVI) of 44%, which is in the 10th percentile of readings from the past year [4] - The stock has historically outperformed these volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) of 75 out of 100 [4]

Group 1 - Charles Schwab Corp (NYSE:SCHW) is trading at record highs, up 4.6% at $97.50 following better-than-expected second-quarter results [1] - Earnings per share were $1.14, exceeding estimates of $1.09, while revenue reached a record $5.85 billion, surpassing estimates of $5.73 billion [1] - The company opened over 1 million new brokerage accounts this quarter, gathering $80.3 billion in new core assets [1] Group 2 - SCHW has seen a 31% year-to-date increase, supported by the 40-day moving average [2] - Options trading activity is high, with 21,000 calls and 13,000 puts exchanged, which is 8 times the typical volume [2] - The most popular options contract is the July 95 put, with new positions being bought to open [2] Group 3 - The stock has a Schaeffer's Volatility Scorecard (SVS) of 84 out of 100, indicating it has tended to outperform volatility expectations [3]