Major Wall Street indices ended the day with gains on Tuesday, driven by positive economic data releases that boosted investor confidence. The Conference Board Consumer Confidence Index rose to 109.7 in June from 102.5 in May, reaching its highest level since January 2022. Additionally, U.S. new home sales increased in May, hitting the highest level since February 2022, as the housing market continued to rebound amid a shortage of previously owned homes.
The SPDR S&P 500 ETF Trust SPY closed 1.1% higher, while the Invesco QQQ Trust Series 1 QQQ gained 1.72% on Tuesday, according to data from Benzinga Pro.
In light of these developments, let’s take a closer look at the options market outlook for these exchange-traded funds:
- SPY: The ETF closed at $436.17 on Tuesday. Options expiring on Friday show significant open interest accumulation at the $440 Call strike, suggesting that this level may act as a resistance in the near term. On the downside, the $430 Put strike has significant open interest accumulation, indicating that traders do not expect the ETF to fall below this level.
- QQQ: The ETF closed at $363.83 on Tuesday. Options data reveal significant open interest accumulation at the $365 Call strike, suggesting that this level could act as a resistance in the near term. On the downside, the $356 level could provide decent support.
It’s important to note that open interest figures provide an estimate of support and resistance levels. However, significant news events or macroeconomic developments can lead to substantial movements in asset prices, potentially causing shifts in open interest levels.
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