US options market activity is falling: The 5-day moving average of call trading volume is down to ~6.6 million contracts, the lowest since early May. This figure has declined by -1.7 million contracts, or -20%, since mid-July. Meanwhile, the 5-day moving average of put trading
Why now
Thesis: Declining options activity, especially calls, suggests reduced bullish speculation and waning momentum.
Catalyst to watch: Further decline in call volume or put/call ratio shifts.
Main risk: Options activity may not directly predict market direction.
Why it matters
Declining options activity, especially calls, suggests reduced bullish speculation and lower market participation, which can signal waning momentum and potential downside risk.
Details
US options market activity is falling: The 5-day moving average of call trading volume is down to ~6.6 million contracts, the lowest since early May. This figure has declined by -1.7 million contracts, or -20%, since mid-July. Meanwhile, the 5-day moving average of put trading volume is down to ~5.3 million contracts, the lowest since February. As a result, the 5-day moving average of the equity call-to-put volume ratio is up to 1.25x, near the highest in 5 years. This ratio has been higher only 11% of the time since 2010. Option investors are waiting for the next major catalyst.
Sources
- x · 2026-09-02 00:58 UTC