S&P 500 call option volume hits record 4.0 million contracts Tuesday
UBS set an 8,100 year-end target for the S&P 500 as record call buying signaled investors were more worried about missing further gains than a pullback.
S&P 500 call option volume reached a record 4.0 million contracts on Tuesday as UBS set an 8,100 year-end target for the index and bullish options positioning continued to build. The move extends a surge in call activity that has more than doubled in recent weeks, while put option turnover stayed near average, suggesting investors were more focused on participating in further upside than hedging against a pullback. Bloomberg Intelligence said the flow showed traders were more concerned about missing the next leg higher than getting caught in the next downturn, reinforcing earlier signs of a sharper options skew and firm implied volatility as demand for upside exposure intensified.
- Call option: A contract that gives the buyer the right to buy an asset at a set price before expiration.
- Put option: A contract that gives the buyer the right to sell an asset at a set price before expiration.
- Implied volatility: The market's estimate of expected price swings, derived from option prices.