I'm reading that 165 is an important level to hold, so put options are probably protecting against volatility at that level. Here is my chart showing the near-term uptrend line and 165-166 support.
There are a few catalysts next week that could move the market (see the full calendar here). On Wednesday at 10am EST, Fed Chairman Ben Bernanke speaks in front of the Joint Economic Committee, and at 2:00pm EST, the FOMC releases the minutes of its April 30/May 1 meeting.
What's interesting is SPY's put/call ratio has been rising with $SPY since May 7 via Schaeffer's Research.
|Source: Schaeffer's Research|
And SPY's SVI (Schaeffer's Volatility Index) has been rising with SPY since May 3. So are SPY's options preparing for some S&P hyperinflation volatility ahead?