Bullish Options Bets Pour In For The SPDR S&P 500 ETF (SPY)

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November 20, 2017 1:14pm NYSE:SPY

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Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today focuses on some big upside bets in the world’s most popular ETF, along with more turmoil for VIX-linked ETPs as volatility craters once again.


ETF/Index options volumes are dormant today, but given the holiday-shortened nature of this week perhaps this is to be expected. We have seen some action in SPY December 265 calls, which given SPY’s $258 handle puts these options nearly 3% out-of-the-money at present levels.

Elsewhere, after an extremely brief pop to as high as the $14.50 level, the VIX has cratered back to Earth and is presently trading at around the $10.66 level, below its 200 day MA once more. Even though this level is not an all-time low in the VIX, as we saw levels below $9 very briefly in early November, the recent plunge in volatility in the marketplace has hammered “Long Volatility” based ETPs, which as we have mentioned time and again, are typically hampered by contango in the VIX futures markets.

VXX, for example, is in danger of creating a new 52-week (and all-time) low today, with the previous level of $33.11 being touched eleven sessions ago.

The SPDR S&P 500 ETF Trust (SPY) was trading at $258.31 per share on Monday afternoon, up $0.45 (+0.17%). Year-to-date, SPY has gained 16.63%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 136 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 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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