SPY Options Signal Bullish Bias: Key Strikes and Whale Moves to Watch for January 2026

• SPY trades at $690.12, slightly below its 30D moving average of $677.54 but perched near critical resistance clusters.
• Put/call open interest ratio of 1.83 hints at lingering bearish caution, yet technicals scream short-term bullish momentum.
• Block trades show big money buying $698 calls and selling $645 puts—betting on a sharp January move.

The market is sending mixed signals, but one thing’s clear: SPY is primed for a directional breakout. With the ETF sitting just below its 200D MA and options data showing heavy call buying at key strikes, today’s setup screams "upside potential." Let’s break down why.Bullish Sentiment in the Options Chain, But Caution Lingers

The options market is a chessboard of expectations. Right now, SPY’s open interest tells a story: 38,688 contracts at the $692 call (this Friday’s expiry) and 25,671 at the $698 call (next Friday) show retail and institutional players eyeing a push above the 690.38 previous close. Meanwhile, puts dominate at $670 (24,157 OI) and $659 (20,476 OI), suggesting some hedging against a drop below the 682.76 middle Bollinger Band.

But here’s the twist: block trades reveal big players are not just watching. A 6,000-lot buy of the SPY20250930C657 call and a 750-lot sell of the SPY20260116P645 put indicate institutional confidence in a January rally. Think of it like a football coach stacking the playbook—these moves signal a high-probability play to the upside.

No Major News, But Technicals Are the Story

There’s no recent headline risk for SPY—no earnings, no macro shocks. That means the ETF’s direction hinges on technical momentum and options-driven positioning. The RSI at 56.4 and MACD histogram above zero confirm a short-term bullish trend. But don’t ignore the 682.81–683.57 support/resistance cluster. If SPY breaks below that, the 673.84 lower Bollinger Band becomes a hard stop. Above it? The 691.68 upper band and 695 call strikes could light a fire.

Actionable Trades for Today and Tomorrow

For options traders: SPY20260102C698 is your best bet. With 25,671 OI and expiry on next Friday, this call aligns with the 691.68 upper Bollinger Band. If SPY closes above 692, this strike could see explosive gains. For a stock play, target an entry near $683.56 (the upper end of the 30D support zone). Set a stop-loss at 680 and aim for 695 as a first target.

Bearish hedges? The SPY20260102P667 put (15,411 OI) offers downside protection if the 673.84 level cracks. But honestly, the technicals and options flow lean heavily bullish—this is more for risk-averse players.

Bullish Trends and Strategic Entry Points for SPY in Early 2026

SPY isn’t just ticking higher—it’s dancing on a tightrope between institutional optimism and retail caution. The key takeaway? Focus on the 683.56–692 price corridor. If bulls hold the support, the 698–700 call strikes become a goldmine. But if bears take control, the 670–659 puts could force a reevaluation. Either way, the next 72 hours will tell us which way the ETF leans.

This isn’t a high-risk gamble—it’s a calculated bet on momentum. And right now, the odds are in the bulls’ favor.