Bullish Options Bets Seen In The Financial Select Sector SPDR Fund

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April 27, 2017 12:14pm NYSE:XLF

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Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows report, which today points out some big money returning to large caps, continued inflows to small caps, and some interesting options activity in a popular financial ETF.


Some of the recent outflows in SPY have reversed in the past twenty-four hours, with investors putting over $2.5 billion into the fund via creations. These flows join the healthy more than $2 billion worth of inflows into Small-Caps (IWM) that we have witnessed this week as well. We expect the push and pull at or near new highs in major indices to continue, given we have first of the month trading next Monday, coupled with major earnings reports still expected (AAPL, FB, etc.) next week.

Outflows were very light yesterday, with not much to point out that would be considered of consequence. In other activity, we have seen some in-the-money put activity (May 24 strikes) in XLF (SPDR Financials), as the sector started the week strongly in vaulting to its 50 day MA before retreating in the past couple sessions.

The fund itself has seen modest inflows lately of about $350 million in, as financials attempt to bring their performance this year more in-line with the wider markets.

The Financial Select Sector SPDR Fund (NYSE:XLF) was trading at $23.67 per share on Thursday morning, down $0.2 (-0.84%). Year-to-date, XLF has gained 1.81%, versus a 6.52% rise in the benchmark S&P 500 index during the same period.

XLF currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #11 of 39 ETFs in the Financial Equities 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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