IWM Call Options Hit Record High with 2.3 Million Calls Traded Amid Treasury Yield Decline

On Thursday, trading volume of call options reached its third highest level on record, with daily call volume exceeding 37 million contracts. This surge is only surpassed by approximately 40 million and 43 million contracts recorded in Q1 2023 and Q4 2023, respectively. The Russell 2000 ETF (IWM), which tracks small-cap stocks, saw significant activity. IWM call option volume hit a record high, with 2.3 million calls traded, five times the daily average. Open interest for IWM September $225 calls rose from 37,000 to 50,000 contracts. This spike in call option volume, the highest in at least the past 5 years, is attributed to the sharp decline in Treasury yields, which has driven small-cap shares higher in recent days.