Interest rates have risen, marking the Federal Reserve's first hike since 2023, which has led to increased volatility in the markets. The Cboe volatility gauge fell to 15.4, indicating a decrease in market uncertainty. The S&P 500 Index gained over 1% as nearly all sectors experienced gains.
Options traders showed heightened activity, especially in technology stocks, with Intel seeing nearly 1.3 million options traded, significantly above its monthly average. Intel's stock is at its highest since July, buoyed by news of potential chip manufacturing collaborations with SK Hynix.
In the options market, bullish sentiment was evident as 270,000 calls were purchased compared to under 140,000 puts. AMD also experienced increased trading volume, with traders favoring calls over puts. Crowdstrike, a leader in cybersecurity, and SpaceX also saw notable options activity, reflecting a broader bullish trend in the tech sector.
This surge in options trading suggests that investors are optimistic about the potential for further gains in these companies, particularly as they navigate the current economic landscape