Options Trading Frenzy May Explain Recent Stock Market Rally

Unusual options trading activity may explain the recent stock market rally, analysts say
The put-call ratio surged to its highest level in 9 months last week, reflecting heavy demand for downside protection
The ratio quickly reversed as traders loaded up on calls amid the stock rally since Friday
The unusual options activity points to investors quickly shifting positioning, swinging from pessimism to optimism
Some say economic data or Fed rhetoric fueled the rally, but the options data suggests traders rushed from one side of the boat to the other