From CNBC · Oliver Renick · · 1m 40s
Options traders bet on stock highs ahead
Despite weak market breadth, options traders are aggressively buying bullish positions, signalling confidence in new highs for major indexes and tech stocks.
In brief
Despite weak market breadth, options traders are aggressively buying bullish positions, signalling confidence in new highs for major indexes and tech stocks. Options traders are betting heavily on new stock highs despite current market weakness, with pricing suggesting strong odds for the Nasdaq 100, Meta, Intel and…
Market breadth signals weakness
S&P 500 futures trade at all-time highs, but on the New York Stock Exchange Tuesday, 75 stocks made new 52-week lows versus just 14 making new highs.
Options traders pile into bullish bets
Options traders are buying bullish positions in indexes and stock leaders, signalling confidence that new highs are coming despite current market weakness.
Call buying hits highest levels
Monday's rally was so strong that institutional market-makers were caught offsides and had to buy upside calls. For the State Street SPDR S&P 500 ETF Trust, the call to put ratio hit its highest since the first week of August.
Nasdaq 100 odds exceed sixty seven percent
The Invesco QQQ Trust call to put ratio hit its highest in at least a year. Options pricing shows the Nasdaq 100 has more than a sixty seven percent chance of touching a new high by the end of the week.
Tech leaders priced for record highs
Market-makers are pricing in new records for Meta Platforms, Intel and Micron before the end of the year. Meta has a fifty two percent chance of touching seven hundred ninety dollars by October second.
Memory stocks join the rally
Memory stocks tracked by the Roundhill Memory ETF advanced two percent Tuesday. Options pricing points to a new high in Micron by October twenty third and for Sandisk by December eighteenth.
The one thing
Options traders are betting heavily on new stock highs despite current market weakness, with pricing suggesting strong odds for the Nasdaq 100, Meta, Intel and Micron by year-end.
