Rising Treasury yields and mixed corporate earnings impacted market sentiment, though the Dow Jones rose for the sixth straight session, reclaiming the 33,000 level.
Options market data showed muted trading across the major index ETFs, with most activity concentrated in front-week options set to expire, suggesting retail traders were the main participants.
Details:
The $SPDR S&P 500 ETF Trust(SPY)$ options overall reflected a bullish trading sentiment, with sellers of put options dominating. Open call interest declined -1.4% over the past 5 days. Open put contracts increased 12.2% over the same period.
For call options, the most actively traded was the $SPY 20240509 521.0 CALL$ with a 521 strike, adding 9,475 contracts.
The most sold put option was the $SPY 20240509 515.0 PUT$ with a 515 strike, adding 22,000 contracts. This implies expectations for the S&P 500 ETF to remain above 515 by May 9 expiration.
The $Invesco QQQ(QQQ)$ options overall showed a bullish trading sentiment, with sellers of put options dominating. Open call interest increased 1.6% over the past 5 days. Open put contracts grew 3.1% over the same period.
For call options, investors bought the most $QQQ 20240621 500.0 CALL$ with a 500 strike, adding 9,894 contracts. This suggests expectations for a 13% rally in QQQ by June 21 expiration.
For put options, the most actively traded was the $QQQ 20240509 433.0 PUT$ with a 433 strike, adding 8,693 contracts.
The $iShares Russell 2000 ETF(IWM)$ options overall reflected a bearish trading sentiment, with sellers of put options dominating. Open call interest grew 3% over the past 5 days, while open put contracts increased 4% over the same period.
For call options, the most actively traded was the $IWM 20240514 207.0 CALL$ with a 207 strike, adding 3,901 contracts.
For put options, investors heavily bought the $IWM 20240621 194.0 PUT$ with a 194 strike, adding 36,000 contracts. This implies expectations for a 4.4% decline in IWM by June 21 expiration.
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