Why The SPDR S&P 500 Could Rally Into The Weekend

On CNBC's "Options Action," Bonawyn Eison spotted some unusual activity in SPDR S&P 500 ETF Trust SPY on Wednesday.

There was a buyer of 100,000 of the September weekly 395 calls at an average price of $2.50 per contract, Eison said. Traders expect SPDR S&P 500 to rally into Friday’s close, he added.

Check out other assets making moves in the premarket.

“This looks like a bullish call but if you look at the open interest, it’s about 150,000,” Eison stated. “Most of these trades are actually risk-reducing or closing risk,” he further mentioned.

SPY Price Action: The SPDR S&P 500 gained 0.38% to settle at $394.60 on Wednesday.