Traders work on the floor of the New York Stock Exchange (NYSE) during the initial public offering (IPO) of DPC Holdings, Inc. on Thursday, June 25, 2026, in New York, USA.
Michael Nagle | Bloomberg | Getty Images
After the profit, Micron rose by double digits.
GDP and inflation data are good.
Apple is down big.
There were many reasons for stocks to rise significantly on Thursday. S&P500 It ended around the same time it closed on Wednesday.
Traders joined Micron in subduing an overnight rally, sending Nasdaq 100 futures down 3% from an early peak, but buying a late rally. The tech-heavy index closed up three-quarters of a percent.
This wild ride to nowhere may be a sign that institutional market makers own options that reward volatility. That is, they take profits after big moves — buying back puts when the market falls and selling calls when the market splits.
This helps keep stock prices within a range — a phenomenon options traders call “long gamma.” Dealers who typically sell options may feel more comfortable owning cheaper out-of-the-money bets as the June 30 expiration of Tuesday’s monthly option approaches.
S&P 500 year-to-date
“Right now, dealers have long gamma on both the index and the top stocks, and it’s stabilizing,” said Brent Kotuba, founder of Spot Gamma, an options analysis service. “The explosion will happen if we see an AI repricing, a DeepSeek moment, or interest rates rising.”
Bonds were calm on Thursday even as U.S. GDP beat expectations at 2.1% and PCE inflation rose to 4.15%, its highest level since April 2023. The long-term Treasury ETF TLT moved just 3 basis points by the close.
Market makers are likely to buy the S&P index if it starts to fall below 7,200 and sell it if it rises above 7,400, according to Kočuba’s analysis.
