Record Call Surge Aiding the S&P 500 Is a Historically Bullish Signal

  • Call volume on S&P 500 contracts reached 900,000 on Wednesday
  • Options measure has reached just 10 records since August 2005

The S&P 500 Index’s climb to a record high was aided by historically strong support from bullish options traders. Call volume on S&P 500 contracts surged to a record high of more than 900,000 on Wednesday, according to data compiled by Bloomberg. The measure has reached a record on just 10 occasions since August 2005, with the last one coming in 2014.

Here’s what the S&P 500 has done in the months following such an occurrence:

  • Added an average 0.9 percent in next 30 trading days; compares with average 0.8 percent gain in all other stretches of equal length
  • Rose an average 3.2 percent in the next 60 days; index adds an average 1.6 percent in all other stretches
  • Gained an average 6.3 percent in the next year; index adds an average 6.7 percent in all other stretches
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