Options Traders Bet on New Highs for Tech Stocks Despite Market Concerns

While S&P 500 futures recently reached record levels, a cautious mood pervades the market as investors weigh the narrow breadth of U.S. stock gains. On the New York Stock Exchange last Tuesday, 75 stocks dropped to new 52-week lows, contrasting sharply with just 14 stocks hitting new highs. This disparity has raised questions about the sustainability of the rally.

However, options traders appear confident in a continued upward trajectory. They have been aggressively buying call options on major indexes and leading technology stocks, signaling expectations for further price advances. The surge in bullish options activity was particularly evident following Monday’s strong market rally, which even caught some institutional market-makers off guard. According to data from Barchart, the ratio of call options to put options surged to its highest level since May, and for the State Street SPDR S&P 500 ETF Trust (SPY), it reached levels not seen since early August.

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, also saw its call-to-put ratio climb to the highest point in at least a year. Based on options pricing from the ThinkOrSwim platform, the probability that the Nasdaq 100 will reach a new high before the end of the week now exceeds 67 percent.

Market-makers are pricing in optimism for individual tech leaders behind this rally. Stocks such as Meta Platforms, Intel, and Micron are expected to reach new highs before the end of 2026. Traders often use the delta value of options contracts to estimate the likelihood that a stock will hit a specific price level by a certain date. This method suggests strong bullish sentiment towards these companies.

Meta Platforms, for instance, has seen its weekly options volume soar to more than four times the 30-day average. Implied volatility is notably higher for call options than for puts across Meta’s option terms, indicating greater demand for bullish bets. ThinkOrSwim pricing shows a 52 percent chance that Meta will touch $790, its previous closing high from last year, by October 2.

Intel’s stock has gained roughly 35 percent in the last month, positioning it as a leader in the semiconductor sector’s rebound. This marks a shift from its earlier status as a laggard in the artificial intelligence trade. Intel’s options implied volatility stands at 69, reflecting increased trading activity. Market-makers assign about a 50/50 chance that Intel will surpass its closing high near $140 by October 30.

Another important contributor to the rally on Tuesday was the 2 percent rise in memory stocks, as tracked by the Roundhill Memory ETF (DRAM). Sandisk shares surged over 6 percent, while Micron rose by more than 3 percent. Options data suggests a new high for Micron could come by October 23, with Sandisk potentially reaching a new peak by December 18. However, the implied volatility for the DRAM ETF has decreased since the summer, and market-makers estimate only a 34 percent chance of a new high for the ETF by December 18.

This combination of broad market caution with targeted optimism in key technology stocks reflects the complexity of the current trading environment. While many stocks are showing weakness, investors focused on options strategies are positioning themselves for potential gains in industry leaders. These developments reveal how market participants are managing risk and opportunity amid uneven market signals.

Tech companies like Meta, Intel, and Micron remain critical drivers of market momentum due to their central roles in innovation and demand for semiconductor products. The options market activity suggests that traders expect these stocks to continue pushing higher, reinforcing their importance in portfolio strategies heading into the final months of the year.