Odaily Planet Daily report: Traders are showing strong demand for options betting on further gains in the S&P 500 index; on Tuesday, the volume of call options contracts for the benchmark index exceeded 4 million, setting a new record, while put option volumes remained in line with average levels.
Simplex Trading trader Jason Coogan said that over the two days through Tuesday, the market experienced a “one-way flow of orders.” Analyst Tanvir Sandhu stated, “The options market is reflecting investors’ FOMO (fear of missing out on upside) sentiment. Investors currently appear more concerned about missing the next rally than protecting against a market pullback, as evidenced by significant changes in options skew. Even as equities continue to rise, strong demand for call options continues to support elevated implied volatility.” (Yahoo Finance)