Options Traders Bet on Future Gains Despite Low Market Breadth
Despite the S&P 500 futures hitting all-time highs, U.S. stock market breadth remains low with more stocks making new 52-week lows than highs. Options traders are increasingly bullish, betting that key indexes and major stocks will reach new levels soon. Bullish sentiment is evident in high call-to-put volume ratios for SPY and QQQ ETFs, the highest seen recently according to Barchart data. Market-makers have been caught off guard by recent momentum, buying calls to keep up with demand. The probability of a Nasdaq 100 new high before week’s end is over 67%, while major tech stocks like Meta Platforms and Intel are also being priced for potential records. Memory chip stocks saw significant gains on Tuesday, including Sandisk and Micron. Options pricing suggests that Micron could hit a new high by October 23, with similar expectations for Sandisk in December.
Tickers: $DRAM $INTC $IVZ $META $MU $QQQ $SNDK $SPY $STT
Topics: bullish bias Intel Meta Platforms Micron Technology Nasdaq 100 options trading S&P 500