1.A clear sign of an options mania

Jason Goepfert-Sentiment Trader

It’s a mania. There’s no other word for it, at least in the options market.

Speculative trading picked up last June, lasted through July, then exploded in August, preceding a 13%+ correction in many of the most active names in September. This go-round, it picked up in November, eased a bit in December, now has exploded again as we enter February.

It’s occurred to such a degree it defies explanation, with record speculative activity among the smallest of traders. The 4-week sum has gone parabolic again.

Last week alone, the smallest of options traders increased the pace of their call buying dramatically. Overall volumes increased, but call buying overwhelmed put buying. 

1. Post Election Feb. History

1. January Performance Stats

LPL Blog 

1. American Saved $1.4 Trillion in First Three Quarters of 2020…The Most Ever.

1.Low Volatility Stocks vs. MSCI USA Index is at Widest Level Since 1999.

The return differential between the MSCI USA Minimum Volatility Index, which owns a portfolio of low-volatility stocks, and the MSCI USA Index is now at its widest level since 1999, says John Kolovos, chief technical strategist at Macro Risk Advisors. Owning some of these left-behind companies could be the way to add some ballast to a portfolio in case of a drop, Kolovos says.

Big Tech Stocks Are Back. What’s Behind the Nasdaq’s 4% Rally. By  Ben Levisohn https://www.barrons.com/articles/big-tech-stocks-are-back-whats-behind-the-nasdaqs-4-rally-51611364722?mod=past_editions