Zero Dated Options Activity 3/8/24
Wow. The amount of options that have traded on SPY is off the charts today. The day started off strong rallying to $518.22 around 10:00 a.m. EST from overnight at $515. Then SPY began to sell off until noon when it stopped at $514. A hour later it sold off to $511.13 at 1:40 p.m., EST before it started to rally back to $513.50 at 2:30 p.m. EST. Where do we go into the close?
Key is to looking at the intraday options volume. Above you can see that there are nine strike prices on both the call and put side that have traded above 100,000. The most active calls were the 518s. On the put side the most active calls were the 515s.
Now we have a range 518 calls to 515 puts. At 2:37 p.m. EST we are back to $514. So all calls above $514 will basically be worthless at 4:00 p.m. EST if we close at $514 or lower and so are puts below $514 or lower at 4:00 p.m.
However, if we start to rally above say $515 then pressure could build on the calls and taking SPY higher and a break below $513 could pressure the puts. Let’s see how this turns out in the next 90 minutes and we will conclude this discussion with a video after the close.