SPY Options Signal Bullish Bias: Key Strikes and Block Trades Point to $690 Breakout Potential

• Options data shows heavy call open interest at $687–$700 and put OI at $672–$684
• Block trades reveal institutional buying of calls and selling of puts ahead of January
• Technical pivots and news align with a $690 gamma ceiling as critical threshold

Here’s the thing: SPY isn’t just trading near key support/resistance levels—it’s being positioned there. The options market is whispering a clear message: bulls are hedging a breakout, while bears are bracing for a pullback. Let’s unpack why the data leans bullish, but why you still need a plan for both outcomes.

What the Options Chain Reveals About Institutional Moves

The put/call ratio for open interest is 1.85, which on paper looks bearish. But dig deeper: the top OTM calls for this Friday ($687, $690, $700) and next Friday ($693, $701) show heavy accumulation. That’s not random—it’s positioning for a move above $690, where gamma resistance is concentrated. Meanwhile, the top puts ($672, $684) suggest floor-holders are hedging a drop to 674–682.

Block trades tell the same story. A 6,000-lot call buy at $657 (expiring Sept 30) and a 750-lot put sell at $645 (Jan 16) indicate big players are locking in upside potential while shorting downside protection. Think of it like a football team stacking blockers on one side—they’re preparing for a directional move.

News and Technicals: A Bullish Convergence

The S&P 500’s 19% return in 2025, despite tariff chaos, isn’t just a headline—it’s a validation of SPY’s resilience. Recent technical analysis flags $687.78 as a DeMark pivot resistance and $685.81 as support. SPY’s current range (684–687) is a tight compression phase, and the news about gamma ceilings at $690–691 lines up with options data. This isn’t a coincidence; it’s a setup.

But here’s the catch: if SPY breaks below $688, those puts at $672 could trigger a cascade. Retail traders might panic-sell, and the Bollinger Band lower bound at 674.24 becomes a psychological hurdle. The market isn’t all bulls—it’s a chess game.

Actionable Trades for Today: Calls, Puts, and Precision Entries

For options traders, the most attractive plays are:

• SPY20260102C690 (this Friday’s call): If SPY holds $688, this strike could catch a gamma-driven pop above $690.
• SPY20260109C693 (next Friday’s call): A cleaner breakout above $691.50 validates this as a low-delta play.
• SPY20260109P672 (next Friday’s put): A hedge if you’re long SPY but wary of a drop to 674–679.

For stock traders, consider:

• Entry near $685.81 (support level) with a target at $693 if SPY breaks above $690.
• Entry near $688.10 (30D resistance) with a stop below $684.18 (intraday low today).

Volatility on the Horizon: What to Watch for in January

The next 72 hours will test SPY’s resolve. A close above $691.50 could trigger a wave of call-covered calls, pushing SPY toward $696–702. But a breakdown below $684.18 would validate the bear case, with 679–668 as potential targets. Either way, the block trades and options flow suggest big players are prepared for a directional move—just not sure which way yet.

This isn’t about chasing a trade. It’s about reading the room. The data says: position, don’t panic. Bulls have the edge, but bears have their traps. Your job? Pick your side—and your exit.