How optimistic is the market? The size of options betting on the rise of US stocks has surpassed that on the eve of the dotcom bubble.

SMM: although the economy has not yet recovered under the impact of the epidemic, it does not affect investors' determination to be bullish on US stocks at all.

The volume of option trading betting that the S & P; will continue its rally in the coming months has surged, far outpacing the number of bets that share prices are about to fall, according to a study by Bespoke Investment Group.

At present, the size of Wall Street call options is at its highest level since the dotcom bubble. Bespoke notes that retail investors participating through commission-free App are particularly enthusiastic among the surging volume of options trading.

Despite the optimistic attitude of the options market, more and more market participants are worried that the market has risen more than expected and may fall at a time when US stocks have repeatedly hit record highs.

Bespoke said in the report that although it is difficult to predict when the market will fall, if the catalyst for a bear market appears, then leverage betting on further gains in the stock market may amplify the decline in the stock market.

In fact, as bullish sentiment among U. S. stock investors continues to rise, many investment banks are warning the market of downside risks.

Sean Darby, global head of strategy at Jefferies, said earlier this week that some of the current indicators were beginning to enter an "exciting" phase and that managing the risk of withdrawal was becoming a top priority.

In addition, Jesse Felder, author of the financial blog Felder Report, believes that recent volatility has been rising in tandem with the stock market, which is a sign of short-term bearish.

Generally speaking, the panic index VIX is inversely related to the index, that is, VIX usually rises during a large sell-off in the stock market and falls back in a long-term rally in the market. Recent data show that VIX is at a high around 24, and VIX has been above the historical average of 19.41 for 131 consecutive trading days, the longest since the financial crisis of 2007-09.

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