Options market activity suggests a growing appetite for risk among traders ahead of this week's earnings reports from the Magnificent 7.
In four of the five companies expected to report, call options are trading at a higher price than put options, a sign that investors are leaning toward a bullish outlook.
This trend is particularly notable given the recent underperformance of the group relative to the broader S&P 500.
The imbalance between call and put volumes further reinforces the sentiment.
Call volume outpaces put volume in all but one of the five names, with Alphabet being the exception.
This pattern indicates that traders are positioning for potential gains, likely in anticipation of strong earnings results.