Someone bought a lot of options on SPY on Friday with a very short term.
Does he think the index is going to rise sharply?
On Friday, someone bought a huge amount of "call options" on SPY - the ETF that tracks the S&P 500 index.
What exactly happened there?
They bought almost 8,000 "CALL options".
They paid more than $672,000 for it!
These options will only be profitable if the price of SPY reaches $573 or more by a certain date: May 12, 2025, which is tomorrow!
What does this mean?
This means someone is betting a lot of money that SPY will rise sharply by tomorrow!
The purchase was made in a special way called a "sweep", meaning quickly and all at once, a sign that the move was important and fast.
This was probably not intended to protect an existing investment, but rather to profit from a price increase.
What happened in the meantime?
In the last hour, the United States government updated on a trade deal with China, but it did not elaborate too much.
Whoever wants to know more will have to wait for Trump's press conference, which, coincidentally or not, will be tomorrow.
Meanwhile, weekend futures are up about 1.2%.
Did someone know in advance again?