Profit Taking Begins In Financial, Real Estate ETFs

Analyst Paul Weisbruch of Street One Financial today points out some interesting options activity in the largest S&P 500 fund, along with some rising outflows in financial and real estate ETFs.

To end last week, we saw very near term options trading in SPY (December expiration is this Friday) involving the December 225 calls in decent size. With today’s bump up in equities, these options are in the money with several days left until expiration, and we may very likely see a lot of activity in the 225 line in options given current levels in the SPY and SPX.

SPY itself has pulled in north of $7.5 billion in recent sessions post-FOMC rate decision which we mentioned in last week’s recaps which is not a number to take lightly.

In other activity, we saw some outflows into the recent leg-up in several Financial related ETFs late last week, XLF (SPDR Financials, -$300 million), KRE (SPDR Regional Banking, -$300 million), as well as REITs, ICF (iShares Cohen & Steers) and IYR (iShares. U.S. Real Estate) seeing about $400 million apiece leave the doors.

These flows bear monitoring over the next couple of weeks as we approach the end of 2016, with major money managers looking to rebalance their holdings heading into the new year.

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 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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