Options Traders Are So Bullish It’s Sending Warning Signals
- Stocks tend to fall when call-option metric reached: Goepfert
- ‘No other seven-week stretch has even come close’: Sundial
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Trading in U.S. stock options has by at least one metric reached a level of bullishness not seen since the height of the dot-com boom.
Investors bought to open almost 24 million call options last week, more than ever before, Sundial Capital’s Jason Goepfert wrote in a note Saturday. At the same time, selling of calls to close dropped nearly 30% from its level a couple of weeks ago, he said, attributing that to investors’ desire not to miss out on any gains. That puts the difference between the two at a record high.