No New Stock Highs, No Problem: Options Traders Bet They're Coming in These Names
Options activity shows traders anticipate fresh highs are around the corner for a handful of names.
TL;DR
- S&P 500 futures are at all-time highs, but market breadth is extremely low.
- Options traders are heavily buying calls, anticipating new highs for indexes and key stocks.
- Institutional market-makers may have been caught offsides, forced to buy upside calls to match momentum.
- Call-to-put ratios for SPY and QQQ have reached significant highs, indicating bullish sentiment.
- Options pricing suggests high probabilities for new records in Meta Platforms, Intel, and Micron before year-end.
- Memory stocks, including Sandisk and Micron, saw significant advances, with options pricing new highs.
- The DRAM ETF has seen a drop in implied volatility, with a lower probability for new highs by year-end.