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The following is a list of 5 ETFs that have recently seen an increase in the Put/Call ratio, which is based on open interest of option contracts.

Some technical traders view the Put/Call ratio as a contrary indicator when it reaches extreme highs or lows. In other words, because the ETFs mentioned below have a high number of open put option positions relative to call option positions, contrarians would think most of the ETFs mentioned below are set for a rally. Do you agree?

Options data sourced from Schaeffer's, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 2/28 - 3/11)



The list has been sorted by the change in the Put/Call ratio.

1. Energy Select Sector SPDR (NYSEARCA:XLE):
Market cap of $10.33B. Current Put/Call ratio at 1.79 vs. previous Put/Call ratio at 1.04 (72.12% change). The market seems to be buying downside protection in the current oil rally, as the geopolitical developments in the sector have increased market uncertainty. It's been a rough couple of days for the ETF, losing 6.35% over the last week.

2. SPDR S&P MidCap 400 (NYSEARCA:MDY): Market cap of $11.74B. Current Put/Call ratio at 4.46 vs. previous Put/Call ratio at 3.02 (47.68% change). With the recent pullback, options traders have been buying more downside protection on riskier mid-cap stocks. The ETF has gained 22.07% over the last year.

3. SPDR S&P Retail (NYSEARCA:XRT): Market cap of $510.41M. Current Put/Call ratio at 5.3 vs. previous Put/Call ratio at 4.32 (22.69% change). With oil prices rising rapidly, will retail sales take a knock? Options traders seem to take the possibility seriously, especially when you consider the recent rise in the retail ETF's Put/Call ratio.

4. Semiconductor HOLDRs (NYSEARCA:SMH): Market cap of $1.35B. Current Put/Call ratio at 3.02 vs. previous Put/Call ratio at 2.63 (14.83% change). As Wells Fargo cut its view on the semiconductor sector, options traders seem to have jumped on the opportunity to profit on the decline of the ETF. It's been a rough couple of days for the ETF, losing 8.04% over the last week.

5. PowerShares WilderHill Clean Energy (NYSEARCA:PBW): Market cap of $514.98M. Current Put/Call ratio at 1.03 vs. previous Put/Call ratio at 0.9 (14.44% change). Despite the increase in oil prices, options traders don't expect the clean energy ETF to make strong gains. It's been a rough couple of days for the ETF, losing 6.11% over the last week.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 Trading Themes With Rising Put/Call Ratios