Triple Expiration Data Suggests Elevated Put Buying for 2021


EMERYVILLE, Calif., Dec. 17, 2020 (GLOBE NEWSWIRE) -- iVest+, a leading innovator in trading platforms for educators and retail investors, today released new data that indicate slightly elevated put buying in the S&P and NDX options heading into 2021.

iVest+ uses proprietary tools to separate options volume data for contracts expiring before and after each “triple-witching” expiration. Triple-witching happens four times per year, on the third Friday of March, June, September, and December. By filtering out the data for the contracts that are expiring, iVest+ has visibility into where the money is “rolling” for the weeks and months beyond triple expiration. The last triple expiration this year is Friday, December 18.

“One data point we like to use is to actually compile all of the put-call ratios and open interest from all of the stocks in the S&P 500 and the NASDAQ 100, rather than just looking at the data on the SPY or QQQ options themselves,” said Rance Masheck, CEO of iVest+. “It really gives us a good look at the big picture involved and what the bigger players are doing.”

  • In the universe of S&P 500 stocks, the data shows a Put/Call Open Interest of 0.72 for contracts expiring before December 18, but an Open Interest of 0.79 for contracts that expire after that date.
  • In the universe of NASDAQ 100 stocks, the data shows a Put/Call Open Interest of 0.79 for contracts expiring before triple expiration, but an Open Interest of 0.95 for contracts that expire after that date.

“It’s a decent bump. Certainly, it doesn’t suggest that everyone is concerned enough to buy protection or bet on the downside, but it is a 10% or more shift in both universes of stocks heading in the direction of concern,” added Masheck. “It is the type of information that should be on the radar of any major fund or institution. In addition, we can see that this bump in the Open Interest ratio toward the put side is not matching any increase in volume on the put side, which means that opening positions are shifting more away from the calls without new trading going on. Remember that the markets bottomed within a day of triple expiration in March, and there was a shift in the bullish direction of the options at the time. This looks like the opposite.”

About iVest+

iVest+ has reimagined what trading platforms should look and act like, with DIY investors in mind. Purpose-built by leading educators, for educators, and to empower self-directed traders, iVest+ provides tools that act as an invisible mentor for continuous improvement. iVest+ offers brokerages, trading educators, and independent investors the only stock and options trading platforms that package powerful data and insights into portable technology, with easy-to-use tools and visuals for optimal success. For more information about the company’s white-labeled and retail trading offerings, visit www.ivestplus.com.

CONTACT:
Brendan A. McGrail
Tier One Partners
508-414-1206
bmcgrail@tieronepr.com