Simon Hanouka from OptionsDesk tells Proactive's Stephen Gunnion that progress on a possible resolution to the US debt ceiling saw the S&P 500 improve to its best levels since August 2022, with tech stocks including Google parent Alphabet, Amazon, Apple and Netflix benefitting from the risk-on mood. This resulted in a move into long-dated call options on these tech stocks, he added.
Meanwhile, weaker-than-expected economic data from China had an a negative effect on commodities including copper and oil, as well as mining stocks. This led to increased demand for long-copper futures and call options for oil.