Arabic version: متداولو الخيارات يتحولون نحو الإسكان والطاقة الشمسية

According to Cnbc, stocks surged after midterms brought a Democratic blue wave, prompting options traders to sell volatility and rotate away from big-tech trades. The S&P 500 was up just shy of 2% by midday Wednesday, recovering losses from Friday and Monday. The Cboe Volatility Index fell about four points to below 17, its biggest one-day decline since at least July.

Energy shares were the weakest S&P 500 group as crude oil fell, with WTI trading below $90. The sector dropped 5.6%, while options volume in the State Street Energy Select Sector SPDR ETF rose to more than three times its 30-day average. Puts represented 57% of volume, and large trades were concentrated in bearish put buyers. The ETF’s most active trade was a 62.5-strike put expiring Jan. 15, according to SpotGamma data.

Lower crude prices also drew attention to trades tied to inflation and interest rates. Consumer discretionary stocks gained almost 5%, though options volume in the SPDR sector fund XLY was below average and split between puts and calls. Rocket Companies, the mortgage lender and Redfin owner, recorded options volume twice its average with a strong bullish bias. Of 110,000 options traded, 90% were calls, with more likely initiated by buyers than sellers. The 14- and 16-strike calls expiring Nov. 20 were the most traded.

Solar companies extended recent gains, with the Invesco Solar ETF rising another 9% to its highest level since July. Options volume exceeded five times the average and calls made up 80% of activity. The ETF’s most popular contract was a 48-strike call that bet on a 6% gain through Nov. 20. By contrast, options flows in the VanEck Semiconductor ETF appeared bearish: the fund fell 2.6% to its lowest level since May, while puts accounted for 70% of options volume.