A sign of weakness as we go into the expiration of options on Friday, investors are betting against financials today in the options pit. Mike Yamamoto from Option Monster Reports “Options traders are buying calls at various strikes and sizes in the triple-short FAZ, which is up more than 6 percent on the day to $5.21. Calls outnumber puts by more than 5 to 1, according to optionMONSTER’s Depth Charge tracking system.”
Mike Yamamoto continues saying “Activity was heaviest at the ETF’s June 5 strike, where nearly 25,000 calls had traded only halfway through the session, most of them at or near the ask price in a strong buying pattern. Traders were also buying calls in the June 6 and July 5 contracts. ”
The ETF “FAZ” seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index.
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