Analyst Paul Weisbruch of Street One Financial today points out some bearish moves in volatility funds, as well as some bullish bets on silver prices in his daily fund flows update.
Volatility Funds Hit New Lows
It has gone from bad to worse for holders of long Volatility ETPs such as VXX (iPath S&P 500 VIX Short-Term Futures ETN) and UVXY (ProShares Ultra VIX Short-Term Futures ETF) today, with funds like these trading at yet new all-time lows. Meanwhile, the VIX itself still trading north of $11 ($11.33 presently).
The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE:VXX) was trading at $21.79 per share on Tuesday afternoon, down $0.25 (-1.13%). Year-to-date, VXX has declined -14.58%, versus a 1.66% rise in the benchmark S&P 500 index during the same period. VXX currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #5 of 10 ETFs in the Volatility ETFs category.
The ProShares Trust Ultra VIX Short Term Futures ETF (NYSE:UVXY) was trading at $6.32 per share on Tuesday afternoon, down $0.16 (-2.47%). Year-to-date, UVXY has declined -27.77%, versus a 1.66% rise in the benchmark S&P 500 index during the same period. UVXY currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #2 of 3 ETFs in the Leveraged Volatility ETFs category.
Options Traders Looking For More Silver Upside
In other action, SLV (iShares Silver) has seen some upside call interest involving the distant July 19.50 strikes. These options are considerably out-of-the-money, given SLV trading in the high $15’s and bumping up right against its 50 day MA for the first time since mid-November. SLV has seen mild outflows in the trailing one month period ($28 million out) in spite of impressive price movement in the underlying metal since its mid-December lows to where it is presently.
The iShares Silver Trust ETF (NYSE:SLV) was trading at $15.90 per share on Tuesday afternoon, up $0.2 (+1.27%). Year-to-date, SLV has gained 5.23%, versus a 1.64% rise in the benchmark S&P 500 index during the same period. SLV currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #7 of 29 ETFs in the Precious Metals ETFs category.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.