Keep An Eye On These ETFs On This Options Expiration Day

Paul Weisbruch of Street One Financial in his daily fund flows update focuses on some big options action on Inauguration Day, which also happens to be options expiration day.

SPY Bets Rolling In

It’s all about options expiration today, and we have seen some portfolio managers jostling hedges in portfolios and in some cases taking directional chances going into the end of trading today. SPY 225 and 230 January strikes have been relatively active this week, and SPY is presently trading with a 227 handle with today’s Inauguration Day lift in the S&P 500.

The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $226.96 per share on Friday morning, up $1.05 (+0.46%). Year-to-date, SPY has gained 1.53%, 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 109 ETFs in the Large Cap Blend ETFs category.

XOP Bets Close To Paying Off

We also saw in-the-money put buying in XOP (SPDR S&P Oil & Gas Exploration & Production) earlier this week and with these options being within shouting distance of at-the-money with XOP trading near the $41.40 level in the AM session, this ETF is worth watching closely today.

The SPDR S&P Oil & Gas Explore & Prod. ETF (NYSE:XOP) was trading at $41.44 per share on Friday morning, up $0.5 (+1.22%). Year-to-date, XOP has gained 0.05%, versus a 1.53% rise in the benchmark S&P 500 index during the same period.

XOP currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #23 of 38 ETFs in the Energy Equities ETFs category.

XLV

Finally, in a trade well out on the calendar, XLV (SPDR Health Care Select Sector) June 69 puts have been active this week (>32,000 contracts have traded in that line) which is a notable trade given the time left until expiration and the near-the-money nature of these options.

The Health Care SPDR ETF (NYSE:XLV) was trading at $70.08 per share on Friday morning, up $0.06 (+0.09%). Year-to-date, XLV has gained 1.65%, versus a 1.51% rise in the benchmark S&P 500 index during the same period.

XLV currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #12 of 36 ETFs in the Health & Biotech 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.

About the Author: Paul Weisbruch
paul-weisbruchPaul 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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