SPDR S&P 500 (SPY)

[Two-timer]

you, this report from Pragmatic cap has me a little nervous about shorting at this juncture. Any thoughts? Two

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From Pragmatic Cap:




Some big money is moving into the XLF banking ETF before the banks begin reporting their earnings this week. 130,000 calls were purchased today with expectations of a greater than 7% rally in the shares. From the IB options desk:

XLF – Financial Select Sector SPDR – Shares of the financials exchange-traded fund are 0.75% higher today at $15.36. Massive call transactions in the November contract this afternoon suggest some investors expect further bullish movement in the price of the fund by expiration. Traders taking a near-term optimistic stance on financial stocks purchased approximately 130,000 calls at the November 16 strike for an average premium of 48 cents apiece. Investors holding the contracts may accumulate profits if shares of the XLF rally at least 7% to surpass the breakeven price of $16.48 by expiration. Finally, bullish sentiment spread to the higher November 17 strike where traders paid an average of 19 cents to take ownership of 12,600 call options.