The holiday season has come to an end, and as we step into 2026, it’s time to focus on the options market and unusual options activity. Despite the challenges investors faced in the past year, the S&P 500 saw its fourth consecutive year of gains, raising concerns about valuations.
Looking ahead to the new year, there is a sense of optimism for what lies ahead. While the index’s performance remains uncertain, analysts predict a 9% gain for 2026. As always, there will be pockets of strength in the market to explore.
One area of interest is the unusual options activity in certain stocks heading into 2026. Three stocks stand out as potential opportunities for gains based on their option volume and activity. Canadian Imperial Bank of Commerce (CM), also known as CIBC, is one such stock. As Canada’s fifth-largest bank, CIBC has seen a surge in options volume, indicating potential interest from investors.
JPMorgan (JPM) CEO Jamie Dimon has expressed concerns about a possible recession in 2026, with economists estimating a 33% chance. However, Canadian bank stocks have historically outperformed their American counterparts during crises, making them a resilient option for investors.
Despite the positive outlook, valuations for Canadian bank stocks have increased, with CIBC’s P/E ratio above its five-year average. The stock’s performance in 2025 has been solid, and analysts are cautiously optimistic about its future potential.
On the other hand, Nike (NKE) has faced challenges in recent years, with its stock losing value. However, under the leadership of CEO Elliott Hill, the company is showing signs of a turnaround. Improved revenues and profits in Q2 2026 have boosted confidence in Nike’s future prospects.
Nvidia (NVDA) continues to be a cash-generating machine, with high options volume and a bullish put/call ratio. The company’s focus on AI technology has positioned it for long-term growth, making it an attractive option for investors.
In conclusion, as we navigate the uncertainties of the market in 2026, it’s essential to stay informed about potential opportunities for gains. By monitoring unusual options activity in key stocks like CIBC, Nike, and Nvidia, investors can position themselves for success in the new year.
