Zero Dated Options Activity - 3/12/24
Yesterday was like waterskiing on a lake with no waves, like glass. Today is quite the opposite as we approach 2:00 p.m. EDT. The trading range is from a low of $510.88 to a high of $516.48. The S&P 500 is at $5161 some 39 points away from $5200.
Early in the trading session, SPY traded to a low of $510.88 at 9:45 a.m. EDT. Then as the rally began Puts were sold from $510 up to $516. Right now all except the $516 would expire worthless except the $516. Then as the market ripped up to the high of $516.19 calls were sold from $519 to $513.
So there are more contracts with a value that are in the money from $513 to $516. So there could be pressure if SPY can move to a new high and beyond $517 or $518. The only downside pressure would be a move under $516. A close around $516 would make the Zero Dated Options Traders go home happy.
It is interesting that in the strikes that have traded more than 100,000 contracts puts are more active than calls 1,754,726 to 1,355,149.