Gain detailed insights into the trading activity of Congress members for FAS on our government trades page. Stay updated on how elected officials are investing in FAS.

FAS - Government Trades

Direxion Financial Bull 3X Shares

Financial Services

Technology

Industrials

Direxion is a financial services firm known for its range of leveraged and inverse ETFs. These ETFs provide exposure to various market sectors, including technology, real estate, and commodities. Direxion's ETFs are designed for traders and investors looking to capitalize on market trends, volatility spikes, and news events.

Direxion

The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments and securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a subset of the Russell 1000 Index that measures the performance of the securities classified in the financial services sector of the large-capitalization U.S. equity market. It is non-diversified.

Berkshire Hathaway, Inc. (Cl B)

Direxion Daily Financial Bull 3X Shares

Bank.Shutterstock

Earnings

Large Cap

Sector ETFs

ETFs

PNFP

WTFC

3 Financial ETFs To Watch As US Bank Earnings Season Kicks Off Friday

Direxion’s FAS and FAZ – Is A Bear Or Bull Market Coming For Wall Street?

BRK-A

SCHW

SPGI

The Direxion Daily Financial Bull 3X Shares (NYSEARCA: FAS) trading under the ticker FAS, seeks daily investment results, before fees and expenses, of 300% of the performance of the Financial Select Sector Index.

Direxion&#39;s FAS And FAZ – Is A Bear Or Bull Market Coming For Wall Street?

Long Ideas

Short Ideas

Technicals

Trading Ideas

BRK-B

The Direxion Financial Bear 3X Shares ETF (NYSE: FAZ) was surging over 10% higher on Monday, with continued bullish momentum following the recent collapse of SVB Financial Group and Signature Bank, which has investors 

Looking To Play Berkshire, JP Morgan, Bank Of America To The Downside? This ETF Offers 3X Leverage

Politics

General

AAPL

AMZN

GOOG

GOOGL

TSLA

WYNN

A member of Congress that was tracked as one of the top-performing stock pickers in 2021 recently disclosed positions in several of the biggest technology companies. Could this be a sign that big tech is setting up for a major recovery in 2023?

One Of The Best Performing Traders In Congress Is Buying Big Tech Stocks: Here&#39;s What He Bought

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Leveraged ETFs: Is Volatility Your Best Friend or Worst Enemy?

News

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Financial services stocks ended 2020 on a strong note, rallying against the backdrop of buoyant expectations for cyclical and value stocks – two boxes the sector checks.

Fickle Financial Fluctuations Could Make FAS, FAZ Fantastic

Specialty ETFs

Buoyant Bank Outlook, Federal Reserve Support Could Make FAS ETF Great Again

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Thanks in large part to the Federal Reserve taking interest rates to historic lows, it&#39;s been awhile since investors had anything to cheer about with bank stocks and the corresponding exchange traded funds.

Big Banks Finally Beckon, Providing Juice To This Exciting ETF

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

It&#39;s been a dreadful 2020 for bank stocks as the combination of low interest rates and investors&#39; preference for growth fare are punishing this cyclical value group.

This Bank ETF Could Finally Be Beckoning

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Second-quarter earnings season starts next week with the quarterly kick-off ritual of reports from the major investment and money center banks.

What Happened

Fantastic Time For FAS, FAZ As Bank Earnings Roll In

FANTASY ACES FAN ORD by FANTASY ACES DAILY FANTASY SPORTS CORP

Fantasy Aces Daily Fantasy Sports Corp

Fastenal Co

FASTIGHETS AB BALDR U/ADR by FASTIGHETS AB BALDER

FASTIGHETS AKTIEBLAET AKB by FASTIGHETS AKTIEBOLAGET

Fashion Bel Air SA

FAST CASUAL CONCEPTS INC by FAST CASUAL CONCEPTS INC.

Fast Casual Concepts Inc

FAST FINANCE PAY CORP by Fast Finance Pay Corp.

Fast Finance Pay Corp

FAST RETAILING CO LTD by Fast Retailing Co. Ltd.

Fast Retailing Co Ltd

FAST RETAILING UNSP/ADR by Fast Retailing Co. Ltd.

Fastbase Inc

FASTIGHETS BALDER B NEW by FASTIGHETS AB BALDER

Fastighets AB Balder

Fastly Inc

Fastned BV

Major U.S. banks, including JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Wells Fargo &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), and State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>), are scheduled to release their second-quarter earnings results<a href="https://www.benzinga.com/news/earnings/23/07/33189804/us-banking-heavyweights-set-to-release-q2-results-what-to-watch-for"> on Friday, July 14. </a>
<h2 class="wp-block-heading">Bank Earnings Season Has Begun: What Does the Street Expect?</h2>
According to the Street consensus, JPMorgan is projected to report earnings per share (EPS) of $4.00 in the second quarter, representing a significant 45% increase from the previous quarter. The consensus for quarterly revenues stands at $38.96 billion, reflecting a notable 27% surge compared to the first quarter.
Wells Fargo is predicted to post&nbsp;a second-quarter&nbsp;EPS of $1.18, up 55% from the prior quarter. Revenues are expected to climb 18% to $20.1 billion.
BlackRock&#8217;s second-quarter consensus EPS is $8.41, up 14.3% from the previous quarter. However, its revenues are expected to drop by 1.3% to $4.47 billion.
The market consensus expects Citigroup&#8217;s second-quarter EPS to fall to&nbsp;$1.30, down 40.6% from last quarter. Citigroup revenues are forecasted to drop 1.9% to $19.27 billion.
State Street Corp.&#8217;s second-quarter EPS is anticipated to rise 8.76% quarter-on-quarter&nbsp;to $2.11. State Street Corp. expects $3.14 billion in revenues, up 6.44% from the first quarter.
Read Now: <a href="https://www.benzinga.com/news/23/07/33221661/office-real-estate-crisis-predicted-to-worsen-by-2030-how-major-cities-can-adapt">Office Real Estate Crisis Predicted To Worsen By 2030: How Major Cities Can Adapt</a>
<figure class="wp-block-table is-style-stripes has-small-font-size"> 
<table>
<thead>
<tr>
<th>Date</th>
<th>Company</th>
<th>Q2 Consensus EPS</th>
<th>Q1 Reported EPS</th>
<th>Expected %chg in EPS (QoQ)</th>
<th>Q2 Consensus Revenues</th>
<th>Q1 Reported Revenue</th>
<th>Expected %chg in Revenues (QoQ)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Friday, Jul 14</td>
<td>JPMorgan</td>
<td>4.00</td>
<td>2.76</td>
<td>+44.93%</td>
<td>38.96B</td>
<td>30.72B</td>
<td>+26.77%</td>
</tr>
<tr>
<td>Friday, Jul 14</td>
<td>Wells Fargo</td>
<td>1.15</td>
<td>0.74</td>
<td>+55.41%</td>
<td>20.1B</td>
<td>17.03B</td>
<td>+18.03%</td>
</tr>
<tr>
<td>Friday, Jul 14</td>
<td>BlackRock</td>
<td>8.41</td>
<td>7.36</td>
<td>+14.29%</td>
<td>4.47B</td>
<td>4.53B</td>
<td>-1.32%</td>
</tr>
<tr>
<td>Friday, Jul 14</td>
<td>Citigroup</td>
<td>1.30</td>
<td>2.19</td>
<td>-40.64%</td>
<td>19.27B</td>
<td>19.64B</td>
<td>-1.88%</td>
</tr>
<tr>
<td>Friday, Jul 14</td>
<td>State Street</td>
<td>2.11</td>
<td>1.94</td>
<td>+8.76%</td>
<td>3.14B</td>
<td>2.95B</td>
<td>+6.44%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">3 Bank ETFs To Monitor </h2>
<ul>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) Description: A popular exchange-traded fund (ETF) that tracks the performance of the financial sector in the S&amp;P 500 index. AUM: $33 billion Year-to-date performance: 1.8% Top holdings: Berkshire Hathaway Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (13%), JP Morgan Chase &amp; Co. (9.2%), Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) (8.3%). </li>
<li>Direxion Financial Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) Description: A leveraged ETF that aims to provide three times the daily return of the Russell 1000 Financial Services Index. AUM: $1.3 billion Year-to-date performance: down by 6.4% </li>
<li>SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) Description: An ETF that seeks to replicate the performance of the S&amp;P Banks Select Industry Index, providing an exposure to a portfolio of 90 U.S. bank stocks. AUM: $1.4 billion Year-to-date performance: down by 13.5% Top holdings: Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) (1.6%), Pinnacle Financial Partners, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PNFP#NASDAQ">PNFP</a>) (1.6%), Wintrust Financial Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WTFC#NASDAQ">WTFC</a>) (1.4%). </li>
</ul>
Now Read: <a href="https://www.benzinga.com/news/large-cap/23/07/33220411/cash-in-on-the-crashing-dollar-5-stocks-and-etfs-ready-to-soar-from-the-greenbacks-downfall">Cash In On The Crashing Dollar: 5 Stocks And ETFs Ready To Soar From The Greenback&#8217;s Downfall</a>

The Direxion Daily Financial Bull 3X Shares (NYSEARCA: FAS) trading under the ticker FAS, seeks daily investment results, before fees and expenses, of 300% of the performance of the Financial Select Sector Index.
The Direxion Daily Financial Bear 3x Shares (NYSEARCA: FAZ) similarly seek to magnify returns on the performance of the index, but this time by seeking daily investment results, before fees and expenses, of 300% of the inverse of the index&rsquo;s performance.
The financial sector includes the various businesses and institutions that manage money or provide financial services to keep money circulating in the economy. Currently undergoing a major tech-driven transformation, the sector has significant new growth potential thanks to new financial products and new tech-enabled service offerings. But it also faces uncertainty as legislators adapt regulations to address the risks and challenges of innovations like <a href='https://www.benzinga.com/money/best-cryptocurrency/'>cryptocurrency</a>, digital lending and account aggregators.
The Financial Select Sector Index is diversified across banks, capital markets, insurance, and financial services with companies like Berkshire Hathaway (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-a#NYSE">BRK-A</a>), JP Morgan Chase (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>), Bank of America (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bac#NYSE">BAC</a>), Wells Fargo (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>), Charles Schwab (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schw#NYSE">SCHW</a>), Goldman Sachs Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>), Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>), S&amp;P Global (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spgi#NYSE">SPGI</a>), Blackrock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>) and Chubb (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cb#NYSE">CB</a>).
Watch the full interview here:
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Direxion's FAS And FAZ – Is A Bear Or Bull Market Coming For Wall Street?

The Direxion Financial Bear 3X Shares ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/faz#NYSE">FAZ</a>) was surging over 10% higher on Monday, with continued bullish momentum following the recent collapse of SVB Financial Group and Signature Bank, which has investors <a href="https://www.benzinga.com/news/23/03/31326376/why-several-bank-stocks-are-getting-rocked-today">bearish on the banking industry</a>.
FAZ is a triple leveraged <a href="https://www.direxion.com/product/daily-financial-bull-bear-3x-etfs">fund</a> that is designed to inversely outperform the Financial Select Sector Index.
Some of the more familiar names the ETF tracks include Berkshire Hathaway&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-a#NYSE">BRK-A</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-b#NYSE">BRK-B</a>), weighted at 14.85%; JP Morgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>), weighted at 10.50% and Bank of America (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bac#NYSE">BAC</a>), which has a 6.17% weighting within the fund.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low risk appetites.
For traders wanting to play the financial sector bullishly, Direxion offers the&nbsp;Direxion Financial Bull 3X Shares ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>).
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The FAZ Chart: FAZ gapped up about 9.8% higher on Monday, putting the ETF above the 200-day simple moving average, which is bullish. The ETF has been trading in an uptrend since Feb. 7, making a series of higher highs and higher lows, but hasn&rsquo;t retraced to form a higher low since March 6.
<ul>
<li>Eventually, FAZ will retrace to print at least a higher low, which may&nbsp;take place on Tuesday because on Monday, the ETF printed&nbsp;a doji candlestick. When found at a local top, a doji candlestick can signal a reversal to the downside is imminent.</li>
<li>If that happens, bullish traders will want to see the ETF form a bullish reversal candlestick, such as a doji or hammer candlestick, above the 200-day, which could provide a solid entry point for a swing higher. If FAZ falls under the 200-day SMA, it could signal the current uptrend is over, which could provide a solid entry into its bullish counterpart, FAS.</li>
<li>FAZ has resistance above at $23.79 and $25.32 and support below at $22.42 and $21.06.</li>
</ul>
<img alt="screenshot_2246.png" src="https://www.benzinga.com/files/u278075/screenshot_2246.png" style="height:427px; width:760px" />
Read Next:&nbsp;<a href="https://www.benzinga.com/government/23/03/31320443/biden-addresses-fdic-bank-takeovers-the-banking-system-is-safe">Biden Addresses FDIC Bank Takeovers: &#39;The Banking System Is Safe&#39;</a>

A member of Congress that was tracked as one of the top-performing stock pickers in 2021 recently disclosed positions in several of the biggest technology companies. Could this be a sign that big tech is setting up for <a href="https://www.benzinga.com/news/22/11/29835199/tesla-apple-and-8-other-tech-stocks-on-cramers-buy-list-once-fed-pivots">a major recovery in 2023</a>?
What Happened: One of the top performing traders in Congress in 2021 was Dan Crenshaw (R-TX), according to an annual <a href="https://www.benzinga.com/news/22/02/25337519/10-best-stock-traders-in-congress-in-2021-spoiler-nancy-pelosi-isnt-no-1">report on Congress trading by UnusualWhales.</a>
In the report, Crenshaw was named as the fifth-best trader among members of Congress who bought and sold stocks in 2021.
A recent filing from Crenshaw shows he bought stock in some of the biggest technology companies on Oct. 25, 2022, and also bet on several other stocks in sectors that could see growth ahead.
Crenshaw bought the <a href="https://twitter.com/PelosiTracker_/status/1599844528483368961">following</a>:
<ul>
<li>Alphabet Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>)(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>): $1,000 to $15,000 in shares</li>
<li>Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>): $1,000 to $15,000 in shares</li>
<li>Meta Platforms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>): $1,000 to $15,000 in shares</li>
<li>Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>): $1,000 to $15,000 in shares</li>
<li>WYNN Resorts (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wynn#NASDAQ">WYNN</a>): $1,000 to $15,000 in shares</li>
<li>Direxion Daily Financial Bull 3X Shares ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>): $1,000 to $15,000 in shares</li>
<li>The United States Oil ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uso#NYSE">USO</a>): $1,000 to $15,000 in shares</li>
</ul>
Related Link:<a href="https://www.benzinga.com/government/22/03/26184477/us-congressman-proposes-new-taxes-on-oil-companies-months-after-buying-tesla-shares-what-investors-s"> US Congressman Proposes New Taxes On Oil Companies Months After Buying Tesla Shares&nbsp;</a>
Why It&rsquo;s Important: The purchases show Crenshaw may believe big technology stocks are due for a rebound. At the time of writing, shares of Alphabet, Meta Platforms, Amazon and Apple are down 33%, 63%, 45% and 20% year-to-date in 2022.
The purchase of shares of Wynn Resorts could signal a bet on the casino or sports betting market. Shares of Wynn are down less than 1% year-to-date in 2022.
The ETF picks by Crenshaw could signal which sectors he expects will lead the market&#39;s recovery. The Direxion Daily Financial ETF is a leveraged ETF offering increased exposure to the financial sector, which could be Crenshaw&rsquo;s bet that the major financial stocks are set for a big year in 2023.
Crenshaw also picked up a small stake in the United States Oil ETF, which is up 23% year-to-date in 2022 and could be a bet that the price of oil will continue to stay high with global issues ahead.
The Twitter account of Congress Trading <a href="https://twitter.com/congresstrading/status/1598684055397990400">pointed </a>out that while Crenshaw bet on the leveraged financial ETF, Congressman Dan Bishop (R-NC) bought $200,000 to $500,000 in U.S. Treasury Notes in November and December, which could signal a belief that the markets won&rsquo;t have strong returns in the coming year.
Crenshaw<a href="https://www.benzinga.com/news/21/12/24548624/us-rep-dan-crenshaw-buys-tesla-shares-after-defending-move-to-texas-what-investors-should-know"> made headlines previously </a>for buying shares of Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) in 2021 and openly lobbying for the company to move to Texas, his home state.
While members of Congress are supposed to buy and sell stocks without inside information, a push to ban members from trading due to late disclosures and conflicts of interest <a href="https://www.benzinga.com/markets/cryptocurrency/22/12/29944264/which-members-of-congress-are-giving-their-money-from-sam-bankman-fried-to-charity-and-whi">has gained steam</a>.&nbsp;
Read Next: <a href="https://www.benzinga.com/news/22/06/27744152/california-is-gerrymandered-for-democratic-outcome-says-elon-musk-how-politics-played-into-teslas-mo">California Is Gerrymandered For Democratic Outcome Says Elon Musk, How Politics Played Into Tesla&#39;s Move To Texas</a>

One Of The Best Performing Traders In Congress Is Buying Big Tech Stocks: Here's What He Bought

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Volatility can play the part of an unsung hero or a dastardly villain in the story of returns when it comes to Leveraged ETFs. This piece explores 2 examples that illustrate why such disparity might be the case and what a trader or investor can do to be aware.
<h2>High Volatility Just Might Be Your Enemy</h2>
The chart below displays the daily returns for 2 Leveraged ETFs and their underlying benchmark index beginning in mid-June until the end of July 2021. During this period, the Russell 1000&reg; Financial Services Index (RGUSFLA), the benchmark for the Direxion Daily Financial Bull (NYSEARCA: FAS) and Bear (NYSEARCA: FAZ) 3X Shares, experienced a high amount of volatility. This volatility, of course, affected the returns of the ETFs as well.
<img alt="screenshot_2021-10-22_at_6.51.44_pm.png" src="https://www.benzinga.com/files/images/2021/October/22/screenshot_2021-10-22_at_6.51.44_pm.png" style="height:380px; width:650px" />
Source: Bloomberg.&nbsp;The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor&rsquo;s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. For the most recent month-end performance <a href="https://www.direxion.com/etfs?filter=dailybear1x_dailybullbear2x_dailybullbear3x">click here</a>.
During the above period, the percentage gain or loss for the 2 ETFs and benchmark were as follows:
<ul>
<li>-1.36% Russell 1000&reg; Financial Services Index (benchmark)&nbsp;&nbsp;</li>
<li>-6.25% Direxion Daily Financial Bull (FAS)&nbsp;</li>
<li>0.33% Direxion Daily Financial Bear (FAZ)</li>
</ul>
What is surprising in this data set is that FAS, the bull ETF, clocked in more than 3 times the loss than the benchmark did for the period; similarly FAZ, the bear ETF, recorded less than 3 times the inverse of the benchmark for the period.&nbsp;
This phenomenon, called volatility decay, is one of the reasons that leveraged ETFs are meant for short-term trading rather than long-term holding periods. Volatility decay is especially pronounced when a market experiences high volatility but trades mostly flat for a period of time.
<h2>Low Volatility Might Be Your Friend</h2>
During the period from the end of January to late February 2021, the same index traded slightly higher with much less volatility than the previous example.
The percentage gain or loss for the 2 Leveraged ETFs and benchmark for this period were as follows:
<ul>
<li>11.24% Russell 1000&reg; Financial Services Index (benchmark)&nbsp;&nbsp;</li>
<li>36.18% Direxion Daily Financial Bull (FAS)&nbsp;</li>
<li>-28.72% Direxion Daily Financial Bear (FAZ)&nbsp;</li>
</ul>
&nbsp;
Past performance does not guarantee future results.
<img alt="screenshot_2021-10-22_at_6.53.49_pm_1.png" src="https://www.benzinga.com/files/images/2021/October/22/screenshot_2021-10-22_at_6.53.49_pm_1.png" style="height:420px; width:650px" />
Nevertheless, you can see the bull ETF, FAS, had a return that exceeded 3 times that of the underlying index by more than 3%.&nbsp; The reason for this outperformance is that both the FAS and FAZ ETFs are rebalanced daily, leading to a compounding effect on returns in an upward trending market that is experiencing low volatility.&nbsp;
<h2>Bottom Line</h2>
These leveraged ETFs seek a return that is +300% or -300% of the return of their benchmark index for a single day. The funds should not be expected to provide 3 times or negative 3 times the return of the benchmark&rsquo;s cumulative return for periods greater than 1 day.
In pursuit of their daily investment objectives, leveraged ETFs must rebalance their assets-to-exposure ratio on a daily basis. This means that their returns over time are the product of a series of daily returns, and not the ETF&rsquo;s beta multiplied by the cumulative return of the index for periods greater than a day.
Consequently, those looking to trade these ETFs should be aware of both the overall trend of the market during their selected time horizon and the overall volatility for the period, since both factors combined will affect returns of the ETF.&nbsp; These leveraged funds should be monitored daily and adjusted when necessary to ensure that neither compounding nor volatility decay wreaks havoc in one&rsquo;s portfolio.
An investor should carefully consider a Fund&rsquo;s investment objective, risks, charges, and expenses before investing. A Fund&rsquo;s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund&rsquo;s prospectus and summary prospectus call 866-301-9214 or visit our website at <a href="http://www.direxion.com" title="www.direxion.com">www.direxion.com</a>. A Fund&rsquo;s prospectus and summary prospectus should be read carefully before investing.
Investing in a Direxion Shares ETF may be more <a href="https://www.benzinga.com/money/most-volatile-stocks/">volatile</a> than investing in broadly diversified funds. The use of leverage by a Fund increases the risk to the Fund. The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged, investment results and intend to actively monitor and manage their investment.
The Russell 1000&reg; Index is a trademark of Frank Russell Company (&ldquo;Russell&rdquo;) and has been licensed for use by the Trust. The Direxion Daily Financial Bull and Bear 3X Shares are not sponsored, endorsed, sold or promoted by Russell. Russell makes no representation regarding the advisability of investing in the Direxion Daily Financial Bull and Bear 3X Shares.
Direxion Shares Risks &ndash; An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with the Funds&rsquo; concentrating their investments in a particular industry, <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a>, or geographic region which can result in increased volatility.
The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of each Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Market Risk, Market Disruption Risk, Aggressive Investment Techniques
Risk, Counterparty Risk, Intra-Day Investment Risk, and risks specific to the securities of the Financial Sector. Performance of companies in the financials sector may be materially impacted by many factors, including but not limited to, government regulations, economic conditions, credit rating downgrades, changes in interest rates and decreased liquidity in credit markets. Additional risks include, for the Direxion Daily Financial Bull 3X Shares, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk, and for the Direxion Daily Financial Bear 3X Shares, Daily Inverse Index Correlation/Tracking Risk, and risks related to Shorting and Cash Transactions. Please see the summary and full prospectuses for a more complete description of these and other risks of each Fund.
Distributor: Foreside Fund Services, LLC.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) shares experienced unusual options activity on Monday. The stock price moved up to $119.87 following the option alert. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-10-15</li>
<li>Strike Price: $150.00</li>
<li>Volume: 200</li>
<li>Open Interest: 43</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Options Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Movers

Analyzing Direxion Financial Bull 3X Shares's Unusual Options Activity

Shares of Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) saw some unusual options activity on Friday. Following the unusual option alert, the stock price moved down to $108.44. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-06</li>
<li>Strike Price: $118.00</li>
<li>Volume: 944</li>
<li>Open Interest: 170</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Shares of Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) saw some unusual options activity on Thursday. Following the unusual option alert, the stock price moved up to $110.26. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $100.00</li>
<li>Volume: 412</li>
<li>Open Interest: 1827</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Options Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Options

Markets

Understanding Direxion Financial Bull 3X Shares's Unusual Options Activity

Shares of Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) saw some unusual options activity on Friday. Following the unusual option alert, the stock price moved down to $106.01. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-16</li>
<li>Strike Price: $106.00</li>
<li>Volume: 433</li>
<li>Open Interest: 483</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) shares experienced unusual options activity on Thursday. The stock price moved up to $108.5 following the option alert. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $100.00</li>
<li>Volume: 630</li>
<li>Open Interest: 328</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Unusual Options Activity Insight: Direxion Financial Bull 3X Shares

Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) shares experienced unusual options activity on Wednesday. The stock price moved down to $104.49 following the option alert. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $110.00</li>
<li>Volume: 1998</li>
<li>Open Interest: 2295</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Options Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) shares experienced unusual options activity on Tuesday. The stock price moved down to $107.22 following the option alert. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-16</li>
<li>Strike Price: $106.00</li>
<li>Volume: 248</li>
<li>Open Interest: 189</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

On Thursday, shares of Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) saw unusual options activity. After the option alert, the stock price moved up to $111.29. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-02</li>
<li>Strike Price: $111.00</li>
<li>Volume: 366</li>
<li>Open Interest: 473</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Shares of Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) saw some unusual options activity on Wednesday. Following the unusual option alert, the stock price moved up to $108.69. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-02</li>
<li>Strike Price: $109.00</li>
<li>Volume: 356</li>
<li>Open Interest: 220</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Shares of Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) saw some unusual options activity on Friday. Following the unusual option alert, the stock price moved up to $115.85. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-06-18</li>
<li>Strike Price: $114.00</li>
<li>Volume: 265</li>
<li>Open Interest: 164</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Options Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Financial services stocks ended 2020 on a strong note, rallying against the backdrop of buoyant expectations for cyclical and value stocks &ndash; two boxes the sector checks.
<h3>What Happened</h3>
Some of that shine is being lost in the early stages of 2021, underscoring the delicate nature of the sector&#39;s recovery. Delicate or fickle, the Direxion Daily Financial Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>) and the Direxion Daily Financial Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/faz#NYSE">FAZ</a>).
The bullish FAS seeks returns corresponding with triple the daily performance of the Russell 1000 Financial Services Index while the bearish FAZ looks to deliver <a href="https://www.direxion.com/product/daily-financial-bull-bear-3x-etfs">triple the daily inverse returns</a> of that benchmark.
<h3>Why It&#39;s Important</h3>
Banks were the first deliverers of fourth-quarter earnings news, which triggered upside for FAZ and weakness in FAS.
&ldquo;And yet, followers of the financials know what usually happens next: the banks show weakness.
So while each of the banks is still outperforming the <a href="https://www.direxion.com/product/daily-sp-500-bull-bear-3x-etfs/" target="_blank">S&amp;P 500</a> for the year, they are all trading down since their reports. It&rsquo;s a familiar refrain for followers of the financials, who have come to expect earnings to be a &#39;buy the rumor, sell the news&#39; event,&rdquo; <a href="https://www.direxion.com/xchange/banks-wall-street-putting-its-money-where-its-money-is">according to Direxion</a>.
FAS falling out of style and FAZ coming into bloom in recent weeks is disappointing for bank bulls. That much is obvious, but the scenario is compounded when considering some of the big banks are releasing loan loss reserves and repatriating that cash into earnings while others are restoring dividends and buybacks.
Recent gloominess (or shine for FAZ) could be a sign investors are back to pondering the impact of low interest rates on bank equities.
&ldquo;That question of interest rates, as well as the larger question about the current national macroeconomic picture, will likely determine how long this bank rally may last,&rdquo; said Direxion.
<h3>What&#39;s Next</h3>
For trades wanting to embrace FAS, there&#39;s plenty of reasons to believe there will be opportunities to do so over the course of 2021.
&ldquo;Currently, the banks seem to be in relatively healthy financial condition, all things considered. Loan losses don&rsquo;t appear to be as bad as expected, and several even mentioned resuming buybacks. So, despite Wall Street&rsquo;s optimism (what some would call overly optimistic) over the past six months, its bullishness on the banking sector is seemingly on solid footing,&rdquo; notes Direxion.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The Federal Reserve hit bank stocks and the related exchange traded funds on multiple fronts this year, which is to say any examination of the <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/12/18847586/3-of-2020s-best-etfs-a-clean-active-bunch-that-can-rally-again-in-2021">best ETFs in 2020</a> isn&#39;t going to include financial services funds.
<h3>What Happened</h3>
To end the year, however, things are looking up for the beleaguered financial services, perhaps paving the way for a 2021 renaissance for the Direxion Daily Financial Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>).
As it FAS, which looks to deliver <a href="https://www.direxion.com/product/daily-financial-bull-bear-3x-etfs">triple the daily returns</a> of the Russell 1000 Financial Services Index, is higher by 14.74% over the past month, indicating the geared ETF is responding to some recently favorable headlines. Those include news out last week that the Fed is allowing Dow component JPMorgan Chase (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) to resume share buybacks.
<h3>Why It&#39;s Important</h3>
Earlier this year, sensing the economy would weaken due to the COVID-19 pandemic, the Fed told the largest U.S. banks to halt dividend increase plans and buyback schemes. Some, including Capital One (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cof#NYSE">COF</a>) and Wells Fargo (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>), lowered their payouts. The gloomy bank dividend picture could be poised to change as soon as early 2021, potentially lifting FAS in the process.
&ldquo;The Fed eased restrictions on the banks&rsquo; shareholder payouts for the first quarter of 2021, specifically by allowing share repurchases that had been suspended since late in first-quarter 2020. Some banks have already announced repurchase programs following publication of the Fed&rsquo;s results,&rdquo; according to <a href="https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1257976">Moody&#39;s Investors Service</a>. &ldquo;The Fed delayed until 31 March 2021 any decision on whether to alter the stress capital buffers established for the banks following the June results.&rdquo;
FAS has another catalyst in the form of all that cash banks stockpiled to cover sour loans. Thing is, that situation never got as bad as expected and banks will be able to repatriate that cash back into earnings, providing tailwinds early next year.
<h3>What&#39;s Next</h3>
What makes FAS a compelling 2021 bet for aggressive traders is that domestic banks are well-capitalized and 32 of the 33 subject to the Fed&#39;s stress tests surpass the minimum leverage ratios set forth by the central bank.
&ldquo;The Fed&rsquo;s stress test evaluates banks&rsquo; resilience to different recession scenarios by estimating their earnings, loan-loss provisions and capital levels over nine quarters, from the third quarter of 2020 through the third quarter of 2022,&rdquo; notes Moody&#39;s. &ldquo;A sizeable increase in loan loss reserves at US banks during the first half of 2020provided them with a larger buffer to absorb the more severe stresses in this round. As a result, the banks&rsquo; declines in capitalization under the December scenarios, as measured by the Common Equity Tier 1 (CET1) ratio, were similar to their June results despite the more severe stress.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Thanks in large part to the Federal Reserve taking interest rates to historic lows, it&#39;s been awhile since investors had anything to cheer about with bank stocks and the corresponding exchange traded funds.
What Happened: That&#39;s starting to change. For example, the Financial Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlf#NYSE">XLF</a>), the financial services ETF, is higher by 18% over the past month, indicating there&#39;s some momentum for once moribund bank stocks.
XLF&#39;s recent success is just one example, but there&#39;s a growing chorus of market participants forecasting ongoing ebullience for bank stocks in 2021 and those expectations are boosting the Direxion Daily Financial Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>) right now.
FAS, which attempts to deliver <a href="https://www.direxion.com/product/daily-financial-bull-bear-3x-etfs">triple the daily returns</a> of the Russell 1000 Financial Services Index, is higher by more than 56% over the past month.
Why It&#39;s Important: Obviously, FAS is a leveraged ETF, meaning it&#39;s best deployed as a short-term trading instruments, but traders don&#39;t need to fret because there are some promising historical trends at play this month for FAS.
On a historical basis, <a href="https://www.schaeffersresearch.com/content/analysis/2020/12/03/25-stocks-to-target-in-december">10 of the top 25 S&amp;P 500</a> stocks in the final month of the year are banking names, including some marquee components in FAS&#39;s underlying index, such as JPMorgan Chase (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>), Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>) and PNC Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pnc#NYSE">PNC</a>).
Of that group of 10 bank stocks, all have December success rates of 80% to 90% and the worst performer is Comerica (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cma#NYSE">CMA</a>) with an average last month return of 1.59%.
What&#39;s Next: Aside from historical patterns, which aren&#39;t guaranteed to repeat, FAS has other tailwinds. Namely an improving economy, which would enable FAS member firms to repatriate billions of dollars cash previously set aside for bad loans back into per share earnings.
&ldquo;The four biggest U.S. banks &ndash; <a href="https://www.cnbc.com/quotes/?symbol=JPM" target="_blank">JPMorgan Chase</a>, <a href="https://www.cnbc.com/quotes/?symbol=BAC" target="_blank">Bank of America</a>, <a href="https://www.cnbc.com/quotes/?symbol=C" target="_blank">Citigroup</a>&nbsp;and <a href="https://www.cnbc.com/quotes/?symbol=WFC" target="_blank">Wells Fargo</a> &ndash; have amassed a nearly $100 billion pile of cash for loan loss reserves as of the third quarter. The broader industry has <a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-loan-loss-reserves-approach-great-financial-crisis-levels-60310921" target="_blank">created</a> its largest collective reserve since 2010, when mortgage defaults sparked a recession that required massive bailouts of banks and other companies,&rdquo; <a href="https://www.cnbc.com/2020/12/03/coronavirus-why-bank-stocks-could-be-one-of-the-best-ways-to-play-reopening-trade.html" target="_blank">reports Hugh Son for CNBC</a>.
Bottom line: If the economy improves, banks will have a windfall of cash that can be turned into earnings, potentially propelling FAS higher.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
It&#39;s been a dreadful 2020 for bank stocks as the combination of low interest rates and investors&#39; preference for growth fare are punishing this cyclical value group.
What Hapened: Those factors are making for a toxic brew for the Direxion Daily Financial Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>), which is lower by nearly 59% year-to-date. FAS is designed to deliver <a href="https://www.direxion.com/product/daily-financial-bull-bear-3x-etfs">triple the daily returns</a> of the Russell 1000 Financial Services Index.
Compounding the woes of bank equities and FAS is that in the first half of the year, due to the coronavirus economic shutdown, banks set aside a staggering $72 billion in capital to cover sour loans. Then the Federal Reserve said no to dividend hikes and buybacks.
Why It&#39;s Important: To be sure, the U.S. economy isn&#39;t close to being all the way from the impact of COVID-19. Unemployment is still running high and there&#39;s evidence suggesting that many job losses that were once believed to be temporary are becoming permanent.
However, that&#39;s not the end of the case for FAS. If the economy perks up more rapidly than expected, there&#39;s a credible chance banks will be able to tell investors they set aside too much capital for bad loans in the first half of 2020 and that those reserves can be translated back into earnings.
&ldquo;Yet, banks might be reserving more than the losses they eventually will incur. On second-quarter earnings calls, many bank executives hinted that their reserve builds were likely to peak in the second quarter,&rdquo; <a href="https://www.barrons.com/articles/bank-stocks-could-get-a-lift-as-loan-losses-are-reversed-51599258419?mod=hp_LEADSUPP_2">reports </a><a href="https://www.barrons.com/articles/bank-stocks-could-get-a-lift-as-loan-losses-are-reversed-51599258419?mod=hp_LEADSUPP_2">Barron&#39;s</a>. &ldquo;<a href="https://www.barrons.com/quote/stock/JPM" target="_blank">JPMorgan Chase</a> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) executives noted that the bank leaned a bit more on downside scenarios when building its reserves. Even if the banks&rsquo; dour economic projections come true, the accounting treatment of those reserves might permit them to be released into earnings once the economy improves and losses are covered.&rdquo;
JPMorgan Chase is the third-largest component in the index FAS tracks. Citigroup (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>), the eighth-largest member of the FAS index, set aside $10.5 billion for loans gone bad in the first six months of the year.
What&#39;s Next: Beyond loan loss reserves being turned back into earnings, a catalyst for FAS and it&#39;s one that&#39;s a long-time coming, would be <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/08/17150350/going-deep-in-search-of-value">an earnest rebound</a> by value stocks.
Value stocks currently trade at some of the deepest discounts relative to growth seen in history and value often performs well following economic contraction. If history repeats, the stage could be set for upside for FAS. Finally.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Second-quarter earnings season starts next week with the quarterly kick-off ritual of reports from the major investment and money center banks.
What Happened
With the arrival of each bank earnings season comes opportunity with either the Direxion Daily Financial Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fas#NYSE">FAS</a>) and/or the Direxion Daily Financial Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/faz#NYSE">FAZ</a>).
The bullish FAS tries to deliver <a href="https://www.direxion.com/product/daily-financial-bull-bear-3x-etfs">triple the daily returns</a> of the Russell 1000&reg; Financial Services Index while the bearish FAZ, which is higher by 9.16% <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/06/16218492/left-for-dead-bank-stocks-perk-up-lifting-volatile-etf-along-the-way">over the past month</a>, attempts to deliver triple the daily inverse performance of that benchmark.
Why It&#39;s Important 
Banks faced an array of headwinds in the first half of 2020, including declining interest rates, rising loan loss reserves and the mandate from the Federal Reserve that buybacks be scuttled and dividend hikes be put on hold.
&ldquo;Goldman analyst Richard Ramsden is more bearish, projecting earnings off 69% compared with last year. On the plus side, with the exception of Wells Fargo (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>), which he believes will report a quarterly loss, banks are apt to avoid dividend cuts,&rdquo; <a href="https://www.barrons.com/articles/as-the-banks-report-the-best-advice-is-to-think-long-term-51594432282">reports Barron&#39;s</a>. &ldquo;Still, banks will be hurt by higher reserves, which he expects to hit $32 billion, 27% over last quarter.&rdquo;
Reading through the tea leaves of that assessment, it would appear that the bearish FAZ has a chance to shine this earnings season. Potentially bolstering the case for FAZ is that bank stocks, though still inexpensive relative to the broader market, aren&#39;t quite the value plays they were 12 months ago. 
&ldquo;Even with the recent increase in stock prices, the median North American financial sector stock still trades at an 11% discount to its fair value estimate but below a 30% discount a quarter ago,&rdquo; <a href="https://www.morningstar.com/articles/989365/be-careful-with-financial-services-stocks-today">according to Morningstar</a>. &ldquo;With our assessment that many financial sector stocks are less undervalued than they were a quarter ago, investors should be much more discerning of which stocks they choose and cognizant of the risks they&rsquo;re taking.&rdquo;
What&#39;s Next 
Something else to consider when it comes to the FAS/FAZ decision is that the Russell 1000 Financial Services Index isn&#39;t a bank-specific benchmark. It includes insurance providers and asset managers, among others and some of those companies aren&#39;t all that inexpensive, either.
&ldquo;Outside of banks, we see fewer bargains in the financial sector. The investment-management firms we considered undervalued at the end of the first quarter are mostly fairly valued after the run in the stock market,&rdquo; notes Morningstar. &ldquo;The median North American insurer we cover also trades at around an only 8% discount to its fair value estimate, which is a relatively small margin of safety, given the insurance industry&rsquo;s exposure to interest rates, asset prices, and tail risk of large insurance claims from the pandemic.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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Dan CrenshawHouse (R-TX)	$1K - $15K	etf	Purchase	Dec 01, 2022	Oct 25, 2022	House
Dan CrenshawHouse (R-TX)	$15K - $50K	etf	Sale	Jan 10, 2022	Jan 10, 2022	House

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