“Wealth is not about having a lot of money; it’s about having a lot of options.” – Chris Rock
Welcome to today’s edition of Wall Street Connected.
With Black Friday and Cyber Monday right around the corner and travel restrictions in place, ‘tis the season for internet retail.
You’ll notice internet retail is currently ranking #7 in total traffic by industry amongst financial professionals.
Of all the companies in the internet retail industry, Alibaba Group Holding (BABA) in particular caught our attention this week as the China-based internet retailer witnessed a surge in unusual options activity in recent trading days.
While Wall Street has traded fairly sideways this week, Emerging Markets and volatility have made for fast-moving trades amongst active traders, and volatility is currently ranking #17 in exchange traded fund surging traffic by financial professionals.
Here are some highlights from FA searches this week:
|RANK||TOP INDUSTRY (EQUITIES) BY FAs (Total Traffic) – This Past Week||TOP INDUSTRY (EQUITIES) BY FAs (Surging Traffic) – This Past Week||TOP SECTORS/CATEGORIES (ETFs) BY FAs (Total Traffic) – This Past Week||TOP SECTORS/CATEGORIES (ETFs) BY FAs (Surging Traffic) – This Past Week|
|1||Biotechnology||Book publishing||Equity – Large Cap Growth Equities||Real Estate – Global Real Estate|
|2||Auto Manufacturers||Management consulting services||Equity – Leveraged Equities||Equity – Water Equities|
|3||Software – Application||Communication services, misc||Equity – Technology Equities||Equity – Volatility Hedged Equity|
|4||Aerospace & Defense||Floor laying and floor work, misc||Equity – Consumer Discretionary Equities||Bond – National Munis|
|5||Electrical Equipment & Parts||Dental equipment and supplies||Commodity – Precious Metals||Equity – Foreign Small & Mid Cap Equities|
|6||Drug Manufacturers – Specialty & Generic||Wholesale-Groceries & Related Products||Equity – Small Cap Growth Equities||Bond – Emerging Markets Bonds|
|7||Internet Retail||Cable and pay television services||Equity – All Cap Equities||Real Estate – Real Estate|
|8||Semiconductors||Mortgage Finance||Equity – Materials||Equity – Consumer Discretionary Equities|
|9||Internet Content & Information||Communications equipment, misc||Equity – Health & Biotech Equities||Commodity – Oil & Gas|
|10||Credit Services||Analytical instruments||Equity – Energy Equities||Equity – Consumer Staples Equities|
|11||Diagnostics & Research||Medical Distribution||Volatility – Leveraged Volatility||Real Estate – Leveraged Real Estate|
|12||Oil & Gas E&P||Gold and Silver Ores||Equity – Alternative Energy Equities||Equity – Health & Biotech Equities|
|13||Software – Infrastructure||Publishing||Equity – Industrials Equities||Equity – Small Cap Value Equities|
|14||Conglomerates||Home Improvement Retail||Equity – Large Cap Blend Equities||Equity – Transportation Equities|
|15||Drug Manufacturers – General||Apparel Manufacturing||Equity – Asia Pacific Equities||Multi-Asset – Preferred Stock/Convertible Bonds|
|16||Medical Devices||Aerospace & Defense||Equity – Financials Equities||Volatility – Volatility|
|17||Specialty Retail||Plastics products, misc||Volatility – Volatility||Multi-Asset – Commodities|
|18||Consumer Electronics||Electrical Equipment & Parts||Commodity – Leveraged Commodities||Bond – Government Bonds|
|19||Entertainment||Waste Management||Equity – Small Cap Blend Equities||Equity – Small Cap Growth Equities|
|20||Communication Equipment||Pharmaceutical Retailers||Commodity – Agricultural Commodities||Equity – Inverse Equities|
*- Surge data is based on the average traffic from the past two days compared to the average traffic from the previous market week.
What We’re Reading:
- Signaling that Pfizer Inc. (PFE) and BioNTech SE ADR (BNTX) are nearing the finish line, the companies have announced plans to apply for emergency use authorization for their COVID-19 vaccine. Full story…
- Palantir Technologies (PLTR) announced it was chosen by the U.S. Army to receive one of two prototype contracts for a data security solution. Continue reading…
- Bitcoin, ethereum and other cryptocurrencies have seen increasing attention from investors in recent days. Wall Street and its traditional banks are continuing to adjust to the shift. Check it out…
What We’re Watching:
As we enter the season of Black Friday and Cyber Monday, America’s #1 trader spotted dark pool activity on Alibaba Group Holding (BABA) this week…
And he made a video about it.
P.S. The third Friday of each month is expiration day in the options market. On expiration day, expert option traders are prepared to act on volatility (full details).