Daily Stock Market Equity and Options Trading Commentary

To get a better understanding of the option ideas expressed in this blog, buy my ebook today!

Wednesday, February 4, 2009

Short Term Rally Might be on the Way for Financials

As posted previously their was a massive amount of SPY PUTS being traded, and after that the market slid significantly. Today however there was an unusual amount of Call activity for Financials. 3 of the top 4 contracts traded today were for XLF Calls: 1: XLF June 9 Call, 2: XLF June 6 Put, 3: XLF June 11 Call, 4: XLF February 10 Call, also the 6th and 7th most contracts traded were: 6: WFC February 5 Call, and 7: C February 5 Call, and the 9th and 10th most traded contracts today were: 9: XLF June 10 Call, and 10: XLF June 10 Put.

This shows that many are betting on financials to go higher before they go any lower. This could be a sign that the financials could be due for a short term rally, but it could also be pure speculation about the "bad" bank plan that may come out in the next week or so. Either way I have decided to follow the options market, as it seems to predict the market quite well, and I will be buying some Call contracts to see if I can cash in.

Bookmark and Share
Sphere: Related Content


Hottest Blog Posts of All Time