Options Market Statistics | P/C Ratio Quietly Climbing and VIX Near Year-Lows. The Cheap Hedge Window Is Now

by Monta HONG, CFA | Options Strategist

Index Options

EST June 4, U.S. index options volume declined, totaling 5.68M contracts. The put/call ratio went up to 1.07, a continuation of a quiet but persistent trend this week: the market-wide P/C ratio has aslo been grinding modestly higher across sessions.

While $CBOE Volatility S&P 500 Index (.VIX.US)$ VIX remains near its year-to-date lows, the market is beginning to hedge, but fear hasn't been priced in yet. For defensive investors, this is a cost-effective window to build tail protection before the crowd rushes in. Once fear spikes, hedges get expensive fast.

For $S&P 500 Index (.SPX.US)$ options expiring on next trading session, the gamma structure shows: Put Wall at 7,550, Call Wall at 7,600, and Gamma Flip at 7,572. With SPX closing at 7,584 above the flip, dealers are in positive gamma territory. Above 7,572, market makers buy dips and absorb selling pressure; The index gets pinned toward 7,600. That 7,600 call wall is the near-term ceiling: a sustained break above triggers dealer short-covering and opens further upside. A drop below 7,572 flips the dynamic, dealers turn sellers, amplifying any move lower.

Single Stocks Options

$Bank of America (BAC.US)$ closed up 3.38%, with 594.80K option contracts traded; the put/call ratio declined to 0.08. Bank of America plans to launch cross-border real-time payments service next quarter, enabling corporate clients to transfer funds instantly via Swift or CashPro platform.

$Broadcom (AVGO.US)$ closed down 12.59%, with 1.16M option contracts traded; the put/call ratio climbed to 0.57. Broadcom beats Q2 earnings but AI chip guidance disappoints.

Top 10 Stocks With Highest Daily Options Volume

Among the top 10 stocks by options volume, $Strategy (MSTR.US)$ has the highest put/call trading volume ratio at 0.89. Strategy sells 32 bitcoins for the first time since 2022, drawing market attention.

The highest put/call open interest ratio is $Micron Technology (MU.US)$ at 1.35. Put-heavy OI + near-record IV = messy setup: premium is rich, but directional risk is real.

Top 10 Stocks With Highest Implied Volatility

$AMC Entertainment (AMC.US)$ has the highest implied volatility at 155.14%, up 17.84% from the previous session. AMC Entertainment reports 25.5 million May attendance, highest since 2019, but stock drops over 8% on profit-taking.

$AMC Entertainment (AMC.US)$ implied volatility rose the most, reaching 155.14%, up 17.84% from the previous session.

For premium sellers, this is a trap: options look expensive but realized vol exceeds them. Extreme caution.

Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period. Certain complex option strategies carry additional risk, including potential losses that may exceed the original investment amount. If applicable, supporting documentation for any claims will be furnished upon request.

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