SPDR S&P 500 ETF Trust closed at $770.56, down 0.32% from the previous session.

Despite the slight dip, a wave of sophisticated bullish activity swept through SPY options, headlined by a $4.50 million out-of-the-money bull call spread and a synthetic long position that pocketed a $1.22 million net credit, both extending to August 2026. The overall flow tilted heavily to the upside, with $43.14 million in bullish premium versus $22.52 million bearish, signaling a strong institutional conviction that SPY is poised for further gains.

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Options Indicators

SPY’s implied volatility is 14.82%, and with an IV percentile of 8.76%, current volatility sits at the low end of its recent range, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 1.06 suggests implied volatility is only modestly above realized volatility, reinforcing the view that current option premiums are relatively restrained and the market is not demanding a significant volatility premium at the moment. The Call/Put volume ratio is 0.93.

Large Trades

A synthetic long position with a net credit of $1.22 million was one of the day’s most notable bullish structures, built by selling 20,000 of the 760.0 put and buying 20,000 of the 785.0 call for the 2026-08-21 expiration. With SPY referenced at 770.56, the short 760.0 put was out of the money while the long 785.0 call was also out of the money, creating a classic bullish replacement for long stock exposure. The fact that this synthetic long was established for a net credit is especially notable, as it lets the trader express upside conviction while collecting premium upfront, suggesting a directional bullish bet rather than a simple hedge.

A Bull Call Spread with a net debit of $4.50 million was the other standout large trade, created by buying 13,433 of the 775.0 call and selling 13,433 of the 785.0 call, both expiring on 2026-08-21. With SPY at 770.56, both call strikes were out of the money, so this spread was positioned for a move higher into that strike range. As a defined-risk bullish vertical entered for a net debit, the structure points to a directional upside view with capped profit potential, showing the trader was willing to pay meaningful premium for a measured bullish exposure rather than simply harvest volatility.

Overall, large-trade sentiment was clearly bullish, with total bullish flow at $43.14 million versus $22.52 million of bearish flow, leaving a net difference of $20.62 million to the upside. The directional judgment is therefore bullish. That conclusion is reinforced by the character of the biggest highlighted trades: both of the displayed top trades were explicitly bullish option combinations, including a synthetic long that collected premium and a sizable bull call spread that paid up for upside participation. Taken together, the flow suggests institutional traders were leaning toward further SPY strength while favoring structured positions that balance conviction with defined payoff profiles.

Strategy Reference

Traders seeking a high-probability income play could consider selling the 675.00 put in the near term, a strike far below the market with a delta near 0.05, offering a low assignment probability while capitalizing on the depressed IV percentile environment.