SPY October 775 Calls Offer 1.6% Upside Bet as Volatility Sits Near 12.6%

3 articles · Updated · CNBC · Aug 24

$12.15 SPY October 775 calls were highlighted as a low-risk way to stay bullish, with the options just 1.2% out of the money and covering several major market catalysts over the next 7½ weeks.
12.6% 30-day at-the-money implied volatility makes that exposure unusually cheap—around the 13th percentile of the past year—even as traders face Nvidia earnings, the Sept. 8 Canada tariff retaliation date and the Sept. FOMC decision.
4.73% on the 10-year Treasury and 20-year highs on the 30-year rate underscore the macro pressure, with rising yields weighing on long-duration assets and fueling expectations of possible stronger policy intervention if rates keep climbing.
Nvidia’s Wednesday report is seen as pivotal because the stock has driven the AI-led index rally; over its past four earnings releases, its average 6% drop would translate into roughly a 0.5% hit to the S&P 500 and Nasdaq.
Trade uncertainty and weakening momentum in hot memory and storage names add to the crosscurrents, reinforcing the case for using options to cap downside while preserving upside if markets push to new highs.