Investors are piling into bullish options bets — another sign that the stock market is getting overheated

Investors have been aggressively buying bullish call options, pushing the five-day Cboe equity-only put-to-call ratio down to 0.452 — its lowest level since March 30, 2022 — a sign of frothy sentiment that historically has preceded market pullbacks. The 21-day put-call average also fell to 0.493, the weakest since Dec. 9, 2021. At the same time the S&P 500 notched its 23rd record close of 2026, driven largely by a 2.5% surge in the information-technology sector, while most other sectors lagged. Cboe data show single-stock volatility (VIXEQ) nearing a one-year high and its spread vs. the VIX widening to a record, indicating elevated dispersion beneath the market’s highs. Analysts in the piece warn that extreme bullish options positioning and rising dispersion argue for caution — the market may keep rising while the put-call trend persists, but history suggests heightened downside risk if sentiment reverses.