S&P 500 call option volume surpassed 4 million contracts on Tuesday, reaching an all-time high, as investor FOMO reignited, with the index also hitting a new yearly high on the same day.

Driven by a strong earnings season and robust economic data, investors' fear of missing out on the rally outweighed caution about a pullback, pushing the trading volume of S&P 500 call options to a record high of over 4 million contracts on Tuesday. Meanwhile, the S&P 500 also recorded its first all-time high since June this year on Tuesday.

UBS Group strategist Max Grinacoff stated that the overall pricing of S&P 500 options remains relatively inexpensive, and the upside potential from better-than-expected quarterly earnings has not been fully priced in. UBS currently projects an S&P 500 year-end target price of 8100 points, an increase of nearly 5% from Wednesday's closing price. The core of its bullish logic lies in the expansion of market participation from tech giants to broader economic sectors.