Money Managers Are Trimming Their SPDR S&P 500 ETF (SPY) Positions

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June 20, 2017 11:47am NYSE:SPY


Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at a reversal out of the world’s largest ETF in apparent position trimming, some strangely bullish long volatility bets, and extreme weakness in crude oil funds.

With the S&P 500 (SPX) trading at a new-all time high yesterday, we saw some position trimming in SPY, as the recent inflows reversed to outflows (over $2 billion out).

In options activity, with the VIX back to a $10 handle, we have seen some upside interest in VIX calls, with the 21 strikes in August trading over 100,000 times. To put things in perspective, VIX has not had a handle above $20 since November of 2016, and that was a rather brief stay.

Elsewhere, Crude Oil prices continue to tank today, and have plunged to nine-year lows. As the largest Oil-tracking ETP falls with it, we have seen put interest in the August 8, 8.50 and 9 strikes in USO (U.S. Oil). In spite of the extreme weakness, USO has still managed to pull in net assets year-to-date to the tune of over $460 million.

“Bear” funds in the Crude space that may see an uptick in activity are SCO (ProShares UltraShort Bloomberg Crude Oil), DWT (VelocityShares 3X Inverse Crude Oil ETN), DTO (PowerShares DB Crude Oil Double Short ETN), and WTID (UBS ETRACS-ProShares Daily 3X Inverse Crude ETN).

The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $243.83 per share on Tuesday morning, down $0.83 (-0.34%). Year-to-date, SPY has gained 9.08%, 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 110 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.

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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