Daily Report : Options traders keep setting new speculative records; Financials hit hard as they start to report earnings

  • Jason Goepfert

    Jason Goepfert

    Published: 2020-07-13 at 17:32:03 CDT

Last week, the smallest of options traders once again went on a speculative buying binge. Their net speculative activity is the most extreme since 2007, and when premiums are considered, it is by far the most extreme ever. All options traders spent 50% more on bullish strategies than bearish ones, among the highest amounts ever.; As banks and other financials report Q2 earnings this week, they're trying to recover from still-heavy losses year-to-date. The S&P Financials sector is down more than 22%, one of their worst losses this far into a year. After other large losses this far into a year, when they start to report earnings, they have a tendency to show gains relative to the broader market. It should be a good sign that "smart money" hedgers are shorting Treasury notes, too.

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