Courageous Options Traders Place Some Bearish Bets On SPY
Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out some bearish bets on the world’s largest ETF, inflows coming back to large-cap equity funds, and fresh new lows for long volatility products.
We have seen some mild interest in near term downside puts earlier this week in SPY, with the April 230 puts trading a bit earlier this week, but not in heavy volume.
Speaking of SPY, recent outflows have reversed to inflows, and this push and pull will likely continue through the rest of the week, as portfolio managers will likely be jockeying for end of the quarter numbers and be rejiggering portfolios. Likewise, competing product IVV (iShares Core S&P 500) has also pulled in new assets this week, although to a lesser extent.
The VIX did spike above $15 briefly on Monday, only to sharply retreat back to the low $11 level today. Thus, “Long Volatility” ETPs that we report on here on a continuous basis such as VXX, UVXY, and TVIX, are again trading at new all-time lows this morning on this sharp regression in Volatility.
The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $235.48 per share on Wednesday morning, up $0.16 (+0.07%). Year-to-date, SPY has gained 5.35%, versus a % rise in the benchmark S&P 500 index during the same period.
SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 107 ETFs in the Large Cap Blend ETFs category.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.
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