According to Trade Alert data, the average monthly trading ratio of call and put options on the S&P 500 index has risen to 0.9, reaching a four-year high. Susquehanna Financial Group data shows that the short-term S&P 500 call option skewness index has risen to a two-year high. Mark Hackett, Chief Market Strategist at Nationwide, stated that buying on dips pays off and FOMO sentiment is playing a role. Steve Sosnick, Chief Strategist at Interactive Brokers, stated that institutional investors are concerned about missing out on upward opportunities and are hedging their risks by purchasing call options. Garrett DeSimone, research director at OptionMetrics, pointed out that the surge in demand for call options may drive VIX to rise in sync with the stock market.
