No tech, no problem. Dow makes record and traders think these stocks can lead now

• Healthcare stocks led market gains with 9 of 11 S&P 500 sectors advancing; the Health Care Select Sector SPDR ETF (XLV) saw traders buy 5,300 calls versus just 1,000 puts, with $11 million of the $13 million in premium tied to calls
• UnitedHealth options trading reached $135 million in premium with 87% tied to calls, while weight-loss drug leader saw calls outpace puts more than two-to-one amid $145 million in options premium
• Financial sector stocks also rallied but drew more mixed options sentiment, with call and put premium roughly evenly split in the Financial Select Sector SPDR Fund (XLF) despite much higher overall volume of 380,000 options traded

Market Summary: Healthcare Stocks Lead as Tech Takes Backseat

Key Market Performance

The Dow Jones Industrial Average closed at a fresh record with a 2% gain on Thursday, while the S&P 500 rose 0.4% with 9 of 11 sectors advancing. In contrast, chip stocks declined 1.5%, marking a notable rotation away from technology leadership.

Healthcare Sector Dominance

Healthcare emerged as the day's leading sector, attracting significant options trading activity. The Health Care Select Sector SPDR ETF (XLV) saw heavily bullish positioning, with traders purchasing approximately 5,300 calls compared to just 1,000 puts. Of the $13 million traded in the fund, $11 million was tied to call options.

Notable Stock Movements

Insurance Companies: UnitedHealth Group and Humana hit new one-year highs, with Cigna approaching its May peak. UnitedHealth saw particularly strong options activity, with 87% of its $135 million in options premium tied to calls.

Pharmaceuticals: Eli Lilly rallied over 4% to near all-time highs, driven by weight loss drug momentum. The stock generated $145 million in options premium, with calls outpacing puts more than 2-to-1. Traders bought over 10,500 calls—twice as many as sold and three times more than puts purchased.

Sector Comparison

The healthcare rally showed markedly different options activity than the concurrent financial sector gains. The Financial Select Sector SPDR ETF (XLF) saw nearly 380,000 options trade with premium evenly split between calls and puts, indicating less directional conviction despite similar price performance.

Market Implications

The robust options activity suggests traders view healthcare as a sustainable leadership group, potentially signaling a broader market rotation from technology into defensive and value-oriented sectors.