We are moving our late morning comments on SPY Daily Options to our Substack commentary from Erlanger Research and Good Morning Wall Street. We are still doing an early commentary on those sites but the more useful commentary is waiting to noon to see where the bets are being made.
Today we see heavy call and put action as we approach the 2:00 p.m. EST hour on the East Coast. The most active call is the 501 strike while the most active put is the 499 strike. 6 call strikes from 499 to 504 have traded over 100,000 contracts each. 5 put strikes from 497 to 501 have also traded more than 100,000 contracts.
Yesterday we noted, “The takeaway is the new trend is a market that is for sale and we are seeing this in the options work again today” That held until 3:00 p.m. then SPY took off moving from 497 to 499.
Today SPY is holding around 501. We have ripped from 11:00 to 1:30 p.m EST with a move from 499 to 501.50. Remember tomorrow is options expiration for February. Couple with a PPI release tomorrow could be a wild day with potential for a move to 505 or 495.