It’s not just retail traders who have become super bullish on stocks, according to RBC Capital Markets’ Amy Wu-Silverman. “Everyone has full-on jumped in the pool. This is institutional, this is retail,” Silverman said in a CNBC ” Squawk Box ” interview Tuesday, noting traders of all classes are loading up on call options. These give the holder the right, but not the obligation, to buy the underlying asset a predetermined price for a specified time. Call buying is seen as a bullish sign for a stock or asset. Silverman called the recent activity “historic.” Indeed, stocks have been on fire of late, with the S & P 500 roaring back to all-time highs in recent weeks despite lingering tensions between the U.S. and Iran. The benchmark earlier this month topped 7,400 for the first time. .SPX YTD mountain SPX year to date “When I say ‘historic call buying,’ it really is not hyperbole,” said Silverman, the bank’s head of derivatives strategy. “And I think probably we’re still going to see a little bit more of that because we have Nvidia earnings still on the horizon.” Nvidia is set to report earnings next week, and there’s a lot riding on the report. The chipmaker is the most valuable company in the S & P 500, with a market cap of $5.33 trillion. That alone makes up about 8% of the entire index. Put another way: Nvidia’s report could make or break a stock market that has seen big bullish participation.
