SPDR S&P 500 ETF Trust closed at USD 764.29, gaining 0.85%.

SPY options saw heavy institutional interest, with nearly $14.00 million in combined premium across two standout bullish block trades. A large bull put spread below spot and a long-dated out-of-the-money call combination both reflect conviction that the ETF will hold above key support and extend higher over time.

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Options Indicators

SPY’s implied volatility is 15.77%, and with an IV percentile of 17.53%, current volatility sits on the low end of its historical range, indicating that options are cheaply priced rather than expensive. At the same time, the IV/HV ratio of 1.97 shows implied volatility is running notably above realized volatility, meaning the market is still embedding a meaningful premium over recent actual movement even though overall option pricing remains relatively inexpensive in percentile terms.

The Call/Put volume ratio is 0.73.

Large Trades

A bull put spread collecting $6.96 million in net credit was the largest highlighted trade, with 60,000 contracts sold on the 750.00 put and 60,000 contracts bought on the 730.00 put, both expiring on 2026-09-18. With SPY referenced at 764.29, both strikes were out of the money, making this a classic bullish put spread positioned below spot. The trader is taking in premium while defining downside risk, signaling a view that SPY is likely to stay above 750.00 into expiration or at least avoid a deeper breakdown through the spread.

A directional double-call buy worth a $6.97 million net debit was the other standout, consisting of long 805.00 calls and long 815.00 calls, both expiring on 2027-01-15, with 3,636 contracts bought on each leg. Both call strikes were out of the money versus the 764.29 reference price, so this is a clear upside volatility and directional bet rather than a premium-harvest structure. By paying premium for two upside call lines at higher strikes, the trader is positioning for a sizable advance over a longer time horizon, with the strategy expressing conviction that SPY could make a meaningful rally into early 2027.

Overall, the large-trade flow points to a bullish directional bias. The tone is supported by the dominance of premium-collecting downside put structures placed below the market, which suggest confidence in price support, alongside a sizeable long-call combination targeting a higher upside move over time. Taken together, the block activity reflects constructive sentiment: traders appear willing to monetize downside stability while also paying up for further upside participation, indicating expectations for resilience and a continued advance rather than a sustained bearish reversal.

Strategy Reference

For a low assignment probability with current IV at the 17.53 percentile, a short put below the 730.00 support zone, such as the 700.00 strike, offers a wider cushion; alternatively, a bull call spread using the 800.00/830.00 strikes reduces net debit while still capturing upside participation.