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Analyst: FOMO Sentiment Driving S&P 500 Index's Call Option Buy Order Flow
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In BlockBeats news on August 6th, traders showed strong demand for call options betting on a further increase in the S&P 500 Index. On Tuesday, the trading volume of bullish option contracts on this benchmark stock index exceeded 4 million, reaching a record high, while the trading volume of bearish options remained in line with the average level. Simplex Trading trader Jason Coogan indicated that in the two days leading up to Tuesday, the market witnessed a situation of "one-way order flow."

Analyst Tanvir Sandhu stated: "The options market is reflecting investors' FOMO (fear of missing out) sentiment. Investors currently seem more concerned about missing out on the next leg of the rally rather than hedging against a market pullback, as evidenced by the significant shift in options skew. Even as the stock market continues to climb, the strong demand for call options is still supporting the implied volatility to remain robust." (FX678)

Source: BlockBeats

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