Profit Takers Are Selling Their S&P 500 ETF (SPY) Positions

money flow

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today examines some profit taking in the world’s largest ETF, along with some downside bets on the red-hot energy sector.

New highs have brought some more profit taking in SPY, as the fund has seen north of $3 billion flow out lately, making for a brutal month of November with over $9.3 billion leaving the doors month-to-date.

On the flipside, heading into the Thanksgiving holiday, inflows in the marketplace have been rather light this week on the whole. In ETF/Index options trading we have seen some interest in a strike that we have not previously seen any notable action in, the 290 strike March calls in SPY. While these options are more than 11% out-of-the-money at present levels, there is significant time left until expiration on these contracts.

Elsewhere, it looks like options players are treating the Oil Exploration/Production space with caution here as we have seen trading interest in both the December 34.50 and 33 strike puts in XOP (SPDR S&P Oil & Gas Exploration & Production).

The SPDR S&P 500 ETF Trust (SPY) was trading at $259.80 per share on Wednesday morning, down $0.19 (-0.07%). Year-to-date, SPY has gained 17.30%.

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.