Options Traders Are Betting On Big Upside For The SPY

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out a big bullish bet on the world’s largest ETF, along with some sector rotation seemingly taking place in financials.

Bullish SPY Options Activity Seen

We have noticed some interest in SPY February 232 calls this week (SPY presently trading with a $228 handle), and these options are about 1.3% out-of-the-money with several weeks left until expiration. However, as we had mentioned in previous recaps, SPY has seen largely outflows this week, with about $2 billion leaving the fund in the past couple sessions. In total, the world’s largest ETF has now seen a total of $6.7 billion leave year-to-date.

The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $228.97 per share on Friday morning, down $0.36 (-0.16%). Year-to-date, SPY has gained 2.43%, 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.

Sector Rotation In The Works?

Elsewhere, we have seen some position in trimming ahead of the end of the month in two U.S. equity sector ETFs, with sellers in Financials (XLF) and Health Care (XLV) but buyers in Technology (XLK).


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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