A massive trade just happened in a leading mortgage lender: Watch Options Action Live

Key Points:

• Stocks surged following the midterm elections, with the S&P 500 rising nearly 2% by midday Wednesday and the Cboe Volatility Index dropping to its lowest level since July, indicating reduced market volatility.
• Crude oil prices fell below $90, leading to a 5.6% decline in energy stocks, with significant bearish options activity in the State Street Energy Select Sector SPDR ETF (XLE), suggesting expectations of a slowdown in the energy sector.
• Consumer discretionary stocks rallied nearly 5%, but options volume was mixed and below average, while housing-related stocks like Rocket Companies saw a strong bullish bias in options trading, with 90% of the 110,000 options traded being calls.
• Solar energy stocks continued their recent rally, with the Invesco Solar ETF (TAN) gaining 9% and experiencing unusually high options volume, predominantly in call options, signaling bullish sentiment ahead of November 20.
• The semiconductor sector faced bearish pressure as the VanEck Semiconductor ETF (SMH) dropped 2.6%, accompanied by doubled options volume and a majority of put options, reflecting negative investor sentiment.