An August High As Option Speculation Ramps Up

  • Jason Goepfert

    Jason Goepfert

    Published: 2018-09-05 at 12:51:14 CDT

This is an abridged version of our Daily Report.

Summer high

Stocks ended August at their highest monthly close in at least 36 months. A new high in August has preceded poor returns during the next 1-4 weeks as September lived up to its reputation. The S&P struggled to hold its gains, especially during the past 30 years.

A speculative week

Last week, options traders focused heavily on bullish strategies. The ratio of bullish to bearish ones was one of the highest in more than 5 years, as both small and large options traders spent a large part of their volume buying call options.

Not quite panic

Gold mining stocks suffered yet another large loss and a 52-week low. That’s 6 such losses in 20 sessions, among the largest selling clusters in 25 years.

New loser

The battle for most-hated commodity seems to keep alternating between coffee and one of the grains. The record pessimism toward the former has eased a bit, leaving soybeans holding the current title for most-hated.

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The post titled An August High As Option Speculation Ramps Up was originally published as on on 2018-09-05.

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