![]() ![]() equity strategist at eToro, in an email to MarketWatch. “Options traders have been playing catch up all month,” said Callie Cox, a U.S. The Cboe equity put-call ratio has fallen from around 1.20 just a couple of weeks ago to 0.79 on Wednesday.Īnd a team of analysts at Goldman Sachs Group said there is room for the options’ bullish “skew” to become even more extreme. Garrett DeSimone, head of quantitative research at OptionMetrics, described these bets as “basically wagers on a large Nvidia price swing.”ĭemand for calls linked to the S&P 500 has also increased. Open interest in call options that would pay off if Nvidia shares surged 24% or more has surged, as has demand for bearish put options that would pay off if Nvidia falls 17% or more from Tuesday’s close of $407.80. Traders are also using bullish equity options to chase the rally, strategists said, while bets on a large swing in Nvidia Corp. This helped boost shares of Coinbase Global Inc.Ī large ARK holding, which rose more than 7% on Tuesday. ![]() Have climbed north of $38,000 for the first time since the spring of 2022, FactSet data showed. Seen as a proxy for speculative technology stocks, rose 2.8% on Tuesday, and continued to climb on Wednesday despite weakness in the “Magnificent Seven” megacap technology names. ![]() Surged on Tuesday and Wednesday, while the Ark Innovation ETF What exactly are traders going “all in” on? “FOMO is back, baby! Traders have decided that even though it is still earning nearly 5%, cash is trash compared with quick profits in a variety of risk assets,” Sosnick said in comments emailed to MarketWatch on Wednesday. Steve Sosnick, chief strategist at Interactive Brokers, told MarketWatch that Wall Street appears to be succumbing to another bout of “FOMO,” or the fear of missing out. “As someone who has managed money professionally, there are huge incentives to go all-in.” “Don’t underestimate performance-chasing,” said Mohannad Aama, the chief investment officer and a senior portfolio manager at Beam Capital Management, in a phone interview with MarketWatch. To be sure, this dynamic isn’t exactly new, having briefly emerged during the summer of 2022, and during other brief bouts of optimism stoked by hopes for a Fed pivot.īut after a year that has seen many active managers lag the S&P 500, this latest round of year-end profit-chasing is seeing a more speculative twist. The ‘everything rally’, with a ‘FOMO’ twist Wall Street, however, has had broader concerns about a shift to mobile and digital gaming, and the threat posed to physical videogame retailers.Some have described it as the latest leg of an “everything rally” fueled by a broad macro bet on Federal Reserve interest-rate cuts beginning early next year. Cohen over the past few years has amassed greater influence over the company. GameStop reported its results in the wake of the firing of its chief executive and the election of activist investor Ryan Cohen to executive chair in June, followed by the the resignation of its chief financial officer. But analysts, ahead of the chain’s earnings, noted the recent debuts of popular games like “Diablo IV” and “The Legend of Zelda: Tears of the Kingdom.” GameStop did not immediately respond to a request for information about what the software release was. However, sales of collectibles - items like clothes, toys and cards - fell. The sales gains overall during the quarter, the company said, were “primarily attributable to a significant software release,” along with increased new-hardware sales, or things like consoles, internationally. In a separate filing, GameStop reported gains in sales internationally, led by Europe, while those in the U.S. The company, as with its previous round of earnings, said it would not be holding a conference call. The company ended the quarter with cash and equivalents of $1.195 billion, compared with around $1.3 billion in the prior quarter.Īnalysts polled by FactSet expected a 14-cent adjusted per-share loss, on revenue of $1.14 billion.
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