10 Hot Stocks to Watch — Wednesday, October 7, 2026

Moderna tumbled Tuesday after WHO downplayed pneumonic plague risk, erasing pandemic-trade momentum that had lifted the stock 545% year-to-date. Options flow remains mixed but skews defensive: call volume at $200–$210 strikes suggests profit-taking, while ITM $190 puts and OTM $180 puts indicate hedging around current levels. Watch the $180 support—a break below could trigger further biotech unwind ahead of the Oct. 9 expiry.

Zscaler rallied 5.18% to $212.25 following its Investor Day, where management reaffirmed fiscal 2027 guidance and charted a path to $8B+ in annual recurring revenue by 2031 on the back of AI-driven Zero Trust demand. Options markets are priced for continued momentum, with a 2.52 call-to-put ratio and heavy volume in near-term calls; $220 and $225 strike calls expiring October 9 are drawing significant interest as traders position for further upside. Watch the $225 level as a near-term resistance test.

Rocket Lab jumped 4.91% today as NASA moves toward bulk launch purchases for its lunar base program, while September's 99.6% shareholder approval of the $8 billion Iridium acquisition validates the company's vertical-integration thesis. Options markets are screaming bullish—call-to-put ratio of 4.12 with heavy positioning in October 2026 $75–$80 calls suggests traders expect sustained momentum toward Citi's $105 price target. Watch the $80 level as key resistance; a break above opens $90+ territory.

Broadcom climbed $13.67 to $375.81, extending gains amid a sector-wide rally fueled by accelerating AI data center spending. The options market is aggressively bullish, with a 10.49 call-to-put ratio and over 31,000 shares of $375 calls traded for tomorrow's expiry, suggesting conviction for a push toward $380–$385. Comparable upside in the $400 strike through Oct. 12 indicates traders are positioning for sustained momentum as peers like Marvell raise infrastructure guidance.

Nike tumbled 3.64% to $33.87, extending a brutal 51% annual decline as management struggles to arrest Greater China sales deterioration and revive flagging sportswear franchises. Yet options traders are positioning for a bounce: call volume surged with a 2.83 call-to-put ratio, concentrating bets on $35 and $36 strikes through October 2026. At 21x forward earnings and down 80% from its peak, the stock faces a binary test—either management delivers on its performance business recovery or further downside beckons.

SoundHound AI fell 3.47% to $5.84 as skepticism persists around the voice-AI firm's path to profitability, despite recent momentum from Kia rollouts and OASYS Edge deployment. The options market, however, is painting a different picture: call volume is surging 3.4x puts, with heavy accumulation in $6 calls across October expiries—suggesting traders see a near-term recovery target just above current levels. The 52-week range of $5.65–$22.17 underscores the volatility and stakes; watch the $6 psychological level through mid-October for confirmation of institutional conviction.

Lam Research dropped 3.44% to $333.89 today, pressured by valuation headwinds despite strong AI-driven semiconductor demand benefiting peers like Applied Materials. While the company trades in line with KLA on forward earnings, it commands a premium on free cash flow—a red flag for value-conscious investors. Options markets remain mixed with a 0.68 call/put ratio; heavy put flow ($330 and $297.5 strikes through Oct. 16) signals hedging ahead of earnings clarity. Watch $330 support this week.

Palo Alto Networks surged 3.23% to $419.91, near all-time highs, as OpenAI's warning of a coming "tidal wave" of AI-driven cyberattacks reinforces the case for permanent security spending. Options traders are betting higher, with a 2.02 call-to-put ratio and heavy aggression in $430–$450 calls expiring mid-month, signaling conviction above current levels. Watch $430 as the first resistance; a close above there could trigger further upside into the $450 zone.

Intel dropped 3.18% today, extending pressure as the semiconductor sector fragments around AI infrastructure winners. Options markets are signaling conviction higher, with call-to-put ratio at 2.81 and heavy volume clustering around $115 and $120 strikes expiring this week—suggesting traders see tactical support near current levels. Watch the $115 barrier ahead of Q3 earnings; a break below $114 puts would signal capitulation into the report.

Rivian shares fell 3.12% to $14.30 despite record Q3 delivery numbers and strong R2 demand—a classic growth-stock sell-off amid broader market weakness. Yet options traders are aggressively bullish: call-to-put ratio of 3.60 with heavy positioning in $15 calls expiring October 2026, suggesting conviction in a near-term bounce. Margin improvement and R2 ramp remain structural tailwinds, though cash burn and valuation concerns keep the stock range-bound; watch $15 as a critical resistance level.