Economic data out of China this week is suggesting a slower pace of growth for the emerging economy, and one options player is trying to capitalize on anticipated weakness in some of China's largest companies. Bright and early Friday morning, a bearish bettor sent a long put spread across the tape on the iShares FTSE/Xinhua China 25 Index (FXI).

Specifically, the trader purchased about 11,000 contracts of FXI's November 38 put, and simultaneously sold 11,000 contracts of the November 33 put. With FXI lingering around $40 at the time of the transaction, both of these intermediate-term puts are out of the money.

Continue reading China Bear Opts for a Long Put Spread on FXI

China Bear Opts for a Long Put Spread on FXI originally appeared on BloggingStocks on Fri, 13 Aug 2010 11:40:00 EST. Please see our terms for use of feeds.

Earlier today, Jeff Reeves argued the case for the ProShares UltraShort Gold (GLL) exchange-traded fund (ETF). This inverse ETF could be a solid investment for speculators who are anticipating a further correction in gold futures -- and judging by Thursday's heavy put-buying on the SPDR Gold Trust (GLD), there are plenty of gold bears on Wall Street right now.

GLD's most popular options strike on Thursday was the July 93 put. With GLD trading near $115, this option is currently out of the money by more than 20 points. This put strike traded volume of 100,000 contracts yesterday, with 100% of these puts changing hands at the ask price -- revealing they were most likely purchased. Implied volatility on GLD's July 93 put rose 2.5% by the close, and open interest at this strike swelled overnight by 99,975 contracts. In other words, it seems safe to say that new bearish bets on gold were added at this strike yesterday.

Continue reading Options Activity Heats Up on SPDR Gold Trust

Options Activity Heats Up on SPDR Gold Trust originally appeared on BloggingStocks on Fri, 21 May 2010 13:40:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"If Obama wins, we would seek to profit from his plans to increase infrastructure spending; we would suggest investing in the Industrial Select Sector SPDR (NYSE: XLI)," says fund expert Doug Fabian in his Successful Investing.

"One sector that I think will perform well if Obama wins the election is industrial infrastructure. The Democratic candidate repeatedly has said that the nation needs to rebuild its aging infrastructure, including bridges, the power grid and our water delivery and reclamation system.

"I think there will be a lot of federal money doled out to the states for this purpose if Obama is president -- especially if the Democrats gain seats in Congress.

"One way to play this likely increase in infrastructure spending is via the Industrial Select Sector SPDR, an exchange traded fund focused solely on this area.

"This ETF includes companies from the following industries: building products, construction, engineering, electrical equipment and conglomerates.

"This fund normally will invest at least 95% of its total assets in common stocks that comprise the Industrial Select Sector Index."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Obama stock: Build gains from infrastructure spending, Industrial Select Sector SPDR (XLI) originally appeared on BloggingStocks on Mon, 06 Oct 2008 12:57:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

iShares MSCI Canada (ASE: EWC), an exchange-traded fund, is the top conservative investment idea for 2007 from ETF expert Carl Delfeld, editor of the Chartwell ETF Advisor.

Delfeld explains, "For a conservative pick, I like Canada. The overall Canadian market, as reflected in the iShares Canada index is trading at just 14 times earnings with strong currency, fiscal discipline, and great play on long-term commodity upswing.

"The perception that Canada is nothing but a commodity play is wrongheaded. In fact, the Canadian economy is well diversified, with only 5% of of its GDP attributed to mining. About 15% of GDP comes from tourism and 60% from services. It also represents a sizable and liquid stock market, and a healthy and vibrant financial center."

To see Carl's favorite speculative idea for 2007 click here.

Top Picks 2007: Delfeld looks north of the border originally appeared on BloggingStocks on Sun, 24 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.