05/09/2026
Record $2.6 Trillion S&P 500 Call Options Volume Signals Risk
What happened: Bullish S&P 500 call options reached a record $2.
What happened: Bullish S&P 500 call options reached a record $2.6 trillion in notional volume, with nearly 60% of index options being calls. Goldman Sachs traders warned the market entered a "semi-irrational chasing" phase, driven by speculative positioning and mechanical hedging flows from dealers covering short call positions.
Why it matters: The extreme call volume creates a gamma squeeze dynamic that mechanically fuels upside but breeds tail risk. Given Bitcoin's positive correlation with the S&P 500, this speculative spillover appears bullish short-term but could amplify downside volatility if sentiment reverses sharply.
Source: CoinDesk