Overall market sentiment was mixed ahead of Wednesday’s Fed announcement on its interest rate decision.
On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said SPDR S&P 500 ETF Trust SPY and SPDR S&P 500 ETF Trust QQQ were the two most active ETFs options on Tuesday.
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Bullish activity marginally outpaced bearish activity in the SPY. There was a buyer of 660,000 of the June 437-calls at an average price of 43 cents per contract, Khouw said. The trader expects the SPY to move higher by the end of the week.
However, the overall sentiment was narrowly bearish on QQQ. There were buyers of 218,000 of the June 360-puts at an average price of 60 cents per contract. The traders see QQQ moving lower by the end of the week.
Price Action: Invesco QQQ Trust gained 0.8% to close at $363.26, while SPDR S&P 500 ETF Trust added 0.7% to $436.66 on Tuesday.