Notional Volume Traded in Listed U.S. Equity Options Thanks to strong participation from both retail and institutional investors, U.S. equity options are seeing rising average daily trading volumes—a trend that shows no signs of slowing down. Image: Goldman Sachs Global Investment Research
Huge Advancing Volume as a % of Total Volume and What the S&P 500 Did Next NYSE’s surging advancing volume on Wednesday is highly bullish, with historical data since 1980 showing the S&P 500 consistently gaining over 3-, 6-, and 12-month periods afterward, averaging a 29.2% annual return. Image: Carson Investment Research
S&P 500 Options: % of S&P 500 Listed Volume Expiring within 24 Hours Trading activity in ultra-short-term S&P 500 options, expiring within 24 hours, has skyrocketed to record levels as investors chase rapid profits, amplifying market volatility. Image: Goldman Sachs Global Investment Research
Sentiment – 5-Day Put/Call Volume Ratio The 5-day moving average of the put/call volume ratio has hit its lowest point since late 2021’s bull market peak. Sustained low readings in this ratio often indicate market tops and excessive optimism. Image: Deutsche Bank Asset Allocation
S&P 500 Stocks Net Call Volume The surge in call option activity for mega-cap growth, tech, and defensive stocks indicates ongoing bullish sentiment, while also hinting at possible market shifts ahead. Image: Deutsche Bank Asset Allocation
U.S. Equity Index Option Volume As Trump prepares for his second term, the combination of his policy direction and the prevailing market conditions is poised to boost the options market, particularly among retail investors. Image: Bloomberg
S&P 500 and S&P 500 Cumulative Net Up Volume Recent upside breakouts in S&P 500 cumulative net up volume, along with other bullish indicators, suggest that the S&P 500 may continue to reach new highs, indicating a robust market environment. Image: BofA Global Research
S&P 500 and NYSE Daily Advancing Volume 10x More than Daily Declining Volume When the daily advancing volume on the NYSE is ten times greater than the daily declining volume, it typically leads to higher S&P 500 prices over the next 12 months, with an average gain of 12.8% since 1979. Image: Carson Investment Research
S&P 500 and Leveraged Long vs. Short ETF Volumes The degree of activity in leveraged long vs. short U.S. equity ETFs has experienced a substantial decline as sentiment shifts. Image: Topdown Charts
Single Stock Option Volumes Call option volumes have fallen sharply from the high levels of the pandemic euphoria. Image: Deutsche Bank Asset Allocation
S&P 500 – 5-Day MA of Advancing NYSE Stocks and 5-Day MA of Advancing Volume in NYSE Stocks Can U.S. equity investors expect a relief rally? Image: BofA Global Research