Financials are breaking out, and the bulls are piling into
optionMONSTER's Heat Seeker monitoring program detected the
purchase of about 7,000 September 180 calls in the iconic Wall
Street firm, most of them priced for $1.70 to $2.24. The volume was
about twice the previous open interest at the strike, indicating
that new positions were initiated.
lock in the level where investors can buy the stock, letting them
position for a rally at limited cost. They can generate significant
leverage if shares move in the right direction but will quickly
lose value on a pullback. (See our
Today's activity was followed seconds later by December 24 call
buying in the SPDR Financial Fund (XLF), which is back to its
highest level since September 2008. The timing suggests that at
least one major investor anticipates a rebound the sector following
months of underperformance.
GS is up 1.58 percent to $178.23 in afternoon trading and has been
trending higher since the late spring. It's up 12 percent in the
last three months, twice the gain of the XLF the same time frame.
Earnings and revenue have beaten estimates for the last three
Overall option volume in GS is almost quadruple the daily average,
with calls outnumbering puts by a bullish 5-to-1 ratio.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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