Trader Bets $20.9M on S&P 500 Call Options for 30% Rally
A single trader paid $20.9 million in premium for S&P 500 call options that target a rise above 9,000 by late 2026, implying a 30% rally from current levels near 6,900. The S&P 500 call options position offers limited-risk exposure to a substantial market upswing or a spike in volatility. Susquehanna’s Christopher Jacobson flagged the trade for its size and directional bet, noting that unusually low volatility has kept options pricing attractive. U.S. equity options volumes rose 40% year-on-year to 67 million contracts daily in September, driven by retail and structured-product flows. The timing—just before major U.S. tech earnings and a Federal Reserve meeting with a 25 bps rate cut—highlights growing conviction in continued equity upside. Crypto traders should watch for volatility spillover and cross-market sentiment shifts as policy cues and earnings reports unfold.
Neutral
This large S&P 500 call options bet is focused on U.S. equities and volatility dynamics, with limited direct exposure to cryptocurrencies. However, shifts in equity market volatility and Fed-driven risk sentiment can spill over into crypto markets, affecting trader positioning. In the short term, cross-market volatility may create trading opportunities but is unlikely to move major crypto prices significantly. Over the longer term, sustained equity upside and lower funding stress could support broader risk appetite, including crypto, but remain a secondary driver compared to crypto-specific fundamentals.