Traders looking for 3x the upside in the Financial Bull 3x ETFThe financial exchange traded fund Financial Bull 3x FAS, has seen very unusual call buying in the last two trading sessions. The Financial Bull 3x is designed to generate triple the returns of a standard exchange traded fund.
With the financials being annihilated and the news of the mark to market coming out on Thursday this could be a short term catalyst to a rally in the financials. Even with the market down the financial ETF's XLF and IYF are still positive and this kind of trading is usually institutional money getting ready for a move, this usually happens on what they call an inside day meaning that day's trading is in the range from the previous day's trading.
According to our option trading software, calls are outpacing puts 5-1. We see interest in the April 2.5 calls where more than 10,000 calls have been traded against an open interest of 6,696. We also see the March 4 calls active with 16,953 contracts changing hands against an open interest of 21,879.
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