Key facts
- The Dow Jones Industrial Average reached a new record high.
- Traders bought approximately 5,300 calls in the Health Care Select Sector SPDR ETF (XLV).
- Fewer than 1,000 puts were traded in the XLV ETF.
- The Health Care Select Sector SPDR Fund closed up 3% on Thursday.
- Eli Lilly and UnitedHealth lead the S&P Health Care index by Quant Rating.
The Dow Jones Industrial Average achieved a new record high, indicating positive momentum in the broader market. Concurrently, traders demonstrated a notable preference for the healthcare sector, as evidenced by significant call option activity in the Health Care Select Sector SPDR Fund (XLV). Approximately 5,300 calls were purchased for the XLV ETF, while only about 1,000 puts were traded, suggesting a bullish sentiment among traders regarding the future performance of healthcare stocks. The Health Care Select Sector SPDR Fund closed up 3% on Thursday and broke above a short-term resistance level, signaling improving momentum. This rotation into healthcare is partly driven by the sector's increasing adoption of artificial intelligence for drug discovery, with companies now screening significantly more early-stage candidates. Eli Lilly and UnitedHealth currently hold the top two spots in the S&P Health Care index by Quant Rating.