SPY Options Signal a Call Shortage and Whale Moves — Here's How to Position for April 10th Expiry

• SPY trading near $674.32, up 2.3% for the session
• Massive put open interest at $630 and $535 ahead of key expiry dates
• Block trading data hints at big money hedging near $660 and $677
• RSI at 43.3 and MACD turning positive suggest short-term bulls are gaining control

The SPY is breaking out of recent consolidation with a sharp 2.3% move to the upside today. While the fundamentals are quiet, the options market is loud and clear: bears are bracing for a drop, but bulls may be surprised by how high the ETF could go. With a call/put imbalance in open interest and big block trades at key levels, the stage is set for a directional play — and the numbers are on our side. Let’s break it down.

Big Put OI, Big Call Shortage — What That Means for the Trade

The options market is a chessboard of expectations. Right now, SPY’s open interest is skewed heavily toward puts. On this Friday’s expiring options, the top put OI is at $630 (OI: 134,493), and on next Friday, it jumps to $535 (OI: 204,186). These are deep out-of-the-money puts — and the size suggests institutional players are hedging against a potential downturn. But here’s the twist: calls are severely underrepresented. The top call OI on this Friday is at $700 (OI: 13,479), nowhere near the put volume. That’s a red flag for call buyers — and a green light for those who expect the bulls to take control.

Then there’s the block trading. A massive 50,000 puts bought at $660 (SPY20260430P660) and a 44,400 calls sold at $677 (SPY20260413C677) point to big money moving in. That’s not noise — it’s signaling. The puts could cap upside, but the call sell-off suggests someone is shorting at a key resistance level. And that’s where we should watch next.

No Major News, But Options Tell the Story

There’s no recent news to move the needle on SPY. That means the market is reacting to technicals and option flows. The lack of headline-driven volatility could actually work in our favor. With no surprises, the options market is essentially the only signal we need to follow — and it’s screaming caution on the downside while hinting at a potential breakout.

Here Are the Best Calls, Puts, and Stock Levels to Watch

If you’re bullish:

• Consider buying SPY20260417C690 (OI: 22,344). This call is slightly out of the money but sits just below the 200-day moving average of $663.19 and within the Bollinger Band range. If SPY holds above $671.50 (the intraday low), it could test the upper band at $681.17.
• Alternatively, if you’re aggressive, SPY20260417C710 (OI: 20,347) offers higher reward if SPY breaks through $680.

If you’re bearish or hedging:

• Buy SPY20260410P668 (OI: 14,400) for a near-term hedge. If the ETF turns south, that strike is positioned near key support levels and could see action from the block trading we already see at $660.
• For deeper protection, SPY20260417P630 (OI: 147,920) is a major psychological floor that could catch SPY if the broader market shows weakness.

For stock traders:

• Consider entry near $671.50 if support holds. A bounce off this level with volume could signal a reversal. Set a stop just below the 30-day support at $655.22.
• For a bullish breakout, watch the 681.17 upper Bollinger Band. If SPY closes above it, it’s a green light for a move toward 685–690.

Volatility on the Horizon

With the put/call ratio at 1.98 for open interest, the market is clearly leaning on the downside — but not everyone is betting on a crash. The RSI at 43.3 and MACD crossover suggests momentum is turning bullish in the short term. If SPY continues to hold above the 30-day moving average of $666.24 and the 200-day MA at $663.20, it could break into a new trend.

Bottom line: the options market is setting a trap. Bears are hedging, but the technicals and volume suggest that SPY could surprise to the upside. Trade with the flow, and keep your eyes on the block movers. The next few days will tell if this is just a bounce — or the start of something bigger.