Paul Weisbruch of Street One Financial in his daily fund flows update focuses on some big options action on Inauguration Day, which also happens to be options expiration day.
SPY Bets Rolling In
It’s all about options expiration today, and we have seen some portfolio managers jostling hedges in portfolios and in some cases taking directional chances going into the end of trading today. SPY 225 and 230 January strikes have been relatively active this week, and SPY is presently trading with a 227 handle with today’s Inauguration Day lift in the S&P 500.
The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $226.96 per share on Friday morning, up $1.05 (+0.46%). Year-to-date, SPY has gained 1.53%, versus a % rise in the benchmark S&P 500 index during the same period.
XOP Bets Close To Paying Off
We also saw in-the-money put buying in XOP (SPDR S&P Oil & Gas Exploration & Production) earlier this week and with these options being within shouting distance of at-the-money with XOP trading near the $41.40 level in the AM session, this ETF is worth watching closely today.
The SPDR S&P Oil & Gas Explore & Prod. ETF (NYSE:XOP) was trading at $41.44 per share on Friday morning, up $0.5 (+1.22%). Year-to-date, XOP has gained 0.05%, versus a 1.53% rise in the benchmark S&P 500 index during the same period.
Finally, in a trade well out on the calendar, XLV (SPDR Health Care Select Sector) June 69 puts have been active this week (>32,000 contracts have traded in that line) which is a notable trade given the time left until expiration and the near-the-money nature of these options.
The Health Care SPDR ETF (NYSE:XLV) was trading at $70.08 per share on Friday morning, up $0.06 (+0.09%). Year-to-date, XLV has gained 1.65%, versus a 1.51% rise in the benchmark S&P 500 index during the same period.
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.
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.