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

The fund invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index. The index includes securities of companies from the following industries: Banks; Thrifts & Mortgage Finance; Diversified Financial Services; Consumer Finance; capital markets; Insurance; and Mortgage REITs. It is non-diversified.

Dreyfus Govt Cash Man Ins

Berkshire Hathaway, Inc. Cl B

Jpmorgan Chase & Co.

Direxion Daily Financial Bull 3X Shares

Large Cap

News

Sector ETFs

Short Ideas

Futures

Contracts

Federal Reserve

Markets

Trading Ideas

ETFs

Direxion Daily Real Estate Bull 3x Shares

NAIL

WANT

Finally, the Federal Reserve slashed interest rates for the first time since 2020 to address slowing economic growth. The central bank cut rates by 50 basis points (bps) to 4.75%-5% after holding it at a 23-year high for 14 consecutive months since July 2023.

Here&#39;s How to Go Long on Rate-Sensitive Sectors With ETFs

The,Magnificent,Seven,,7,Of,Largest,Us,Tech,Companies,,Logos

Long Ideas

Specialty ETFs

Exclusives

Tech

Interview

AAPL

AMZN

GOOG

GOOGL

LABD

LABU

MSFT

NVDA

QQQE

SOXL

Direxion Daily Semiconductor Bear 3X Shares

SOXS

TSLA

UTSL

Direxion&#39;s Ed Egilinsky says there are several sectors could be impacted in the current rotation trade environment.

EXCLUSIVE: Beyond The Magnificent Seven — Direxion&#39;s Egilinsky Reveals Top Sector Picks

Screenshot 2024-08-21 at 5.25.20 PM

Technicals

As Fed Potentially Preps Lower Rates Amid Economic Challenges, Direxion Bull &amp; Bear 3X Shares Offer Amplified Trading Opportunities

Bank.Shutterstock

Earnings

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?

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

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?

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

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

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

UNIVERSAL NEW ENGY HLDGS by Universal New Energy Holding Group, Inc.

FASTIGHETS BALDER B NEW by FASTIGHETS AB BALDER

Fastighets AB Balder

Fastly Inc

Fastned BV

Finally, the Federal Reserve slashed interest rates for the first time since 2020 to address slowing economic growth. The central bank cut rates by 50 basis points (bps) to 4.75%-5% after holding it at a 23-year high for 14 consecutive months since July 2023.
This shift in its monetary policy approach shows greater confidence that inflation is moving sustainably toward the 2% target level. It aims to support a stable economic environment without triggering a recession or a significant rise in unemployment.
The central bank also projects two more rate cuts of another 50 bps by the end of this year in its final two meetings this year, due in November and December. It indicates a 100 bps rate cut next year and a 50 bps cut in 2026, which means four more rate cuts in 2025 and two in 2026.
Lower interest rates generally lead to reduced borrowing costs, which can stimulate economic growth. This can positively impact sectors like real estate, consumer discretionary and financial services, which are typically sensitive to interest rate changes. In real estate, for instance, lower rates can boost housing market activity by making mortgages more affordable. For consumer discretionary sectors, reduced borrowing costs can lead to increased consumer spending. In the financial sector, while lower rates can compress net interest margins for banks, they can also encourage lending and potentially lead to increased consumer and business loan activity.
In such a scenario, investors could make a short-term bullish play on the rate-sensitive sectors as these spaces are likely to see huge gains in the wake of rate cuts.
<h2>How Should You Play?</h2>
While futures or long-stock approaches are some of the possibilities, leveraged ETFs might be good options. Leveraged ETFs provide exposure that is a multiple (2 or 3 times) of the performance of the underlying sector using various investment strategies such as swaps, futures contracts and other derivative instruments.
As most of these funds seek to attain their goal on a daily basis, their performance could vary significantly from the inverse performance of the underlying index or benchmark over a longer period when compared to a shorter period (such as weeks, months or a year) due to the compounding effect.
However, these funds are cheaper options than directly going long or utilizing futures contracts. Given this, investors seeking to capitalize on the steady/declining rate scenario in a short span could consider any of the following ETFs, given the bullish outlook for the sectors.
ProShares Ultra Real Estate (ARCA:URE): This fund seeks to deliver two times the daily performance of the S&amp;P Real Estate Select Sector Index. It has AUM of $86.5 million and charges 95 bps in annual fees.
Direxion Daily MSCI Real Estate Bull 3X Shares (ARCA:DRN): This product seeks to deliver three times the performance of the Real Estate Select Sector Index. It has AUM of $120.6 million and charges 95 bps in annual fees.
Direxion Daily Homebuilders &amp; Supplies Bull 3X Shares (ARCA:NAIL): It provides leveraged exposure to homebuilders and creates a three-time long position on the Dow Jones U.S. Select Home Construction Index. It charges an annual fee of 93 bps and has accumulated $369.3 million in its asset base.
Direxion Daily Consumer Discretionary Bull 3X Shares (ARCA:WANT): It offers leveraged exposure to the consumer discretionary sector, providing three times exposure to the Consumer Discretionary Select Sector Index. It has AUM of $25.3 million and charges 95 bps in annual fees.
Direxion Daily Financial Bull 3x Shares (ARCA:FAS): It provides three times exposure to the performance of the Financial Select Sector Index. The fund has amassed $2.4 billion in its asset base and charges 90 bps in annual fees.
<h2>Bottom Line</h2>
Investors should note that these products are suitable only for short-term traders as these are rebalanced on a daily basis.
<a href="https://www.zacks.com/stock/news/2338701/here-s-how-to-go-long-on-rate-sensitive-sectors-with-etfs?cid=CS-BENZ-FT-etf_news_and_commentary-2338701">To read this article on Zacks.com click here.</a>

Here's How to Go Long on Rate-Sensitive Sectors With ETFs

Direxion Managing Director Ed Egilinsky spoke to Benzinga about the sectors likely to benefit from the Federal Reserve&#8217;s potential rate cuts as well as the <a href="https://www.benzinga.com/topic/2024-presidential-election">2024 presidential election</a>.
&#8220;In the current rotation trade environment, there are several sectors that could be impacted such as the Financials, Energy, Tech, and Healthcare/Biotech,&#8221; Egilinsky said. 
<h3 class="wp-block-heading">Semiconductors &#8211; Driving The Tech Sector</h3>
Egilinsky emphasized the significant role of semiconductors in the tech sector's recent success. 
&#8220;The tech sector has continued to be a leader in 2024, with semiconductors once again outpacing the broader tech space,&#8221; he said. This trend is partly due to the excitement surrounding AI.
For traders looking to leverage this momentum, Egilinsky said, &#8220;We have seen inflows YTD with both our Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>), as traders contemplate the next directional move.&#8221; 
These ETFs are designed to capture short-term fluctuations in the semiconductor sector, offering investors tools to capitalize on its ongoing growth.
<h3 class="wp-block-heading">Sector Sensitivity Amid Political, Economic Shifts</h3>
With Election Day on Nov. 5, Egilinsky highlighted how policy changes could affect various sectors in 2025.
&#8220;The election outcome could have a major impact on policy and should create directional volatility in areas sensitive to policy shifts such as healthcare/biotech, financials, and energy,&#8221; he explained. 
Leveraged and inverse ETFs are poised to see increased activity depending on these policy changes:
<ul>
<li>Direxion Daily S&amp;P Biotech Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LABU#NYSE">LABU</a>) and Direxion Daily S&amp;P Biotech Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LABD#NYSE">LABD</a>),</li>
<li>Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) and Direxion Daily Energy Bear 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERY#NYSE">ERY</a>)</li>
<li>Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) and Direxion Financial Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAZ#NYSE">FAZ</a>) </li>
</ul>
Read Also: <a href="EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company">EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company</a>
<h3 class="wp-block-heading">Diversifying Beyond The Magnificent Seven</h3>
Egilinsky also discussed the challenge of diversifying beyond the top-performing Magnificent Seven stocks: Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), 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>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
&#8220;We see many investors looking to diversify beyond the Magnificent Seven stocks,&#8221; he said. For those seeking broader exposure, the Direxion NASDAQ-100 Equal Weighted Index Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQE#NASDAQ">QQQE</a>) offers an equal weight approach to the NASDAQ 100 Index, potentially providing additional sources of returns.
<h3 class="wp-block-heading">Real Estate, Utilities: Benefiting From Rate Cut Expectations</h3>
Egilinsky also noted the performance of real estate and utilities in light of anticipated rate cuts. 
&#8220;The Real Estate and Utilities markets recently hit two-year highs as the realization that the Fed will start cutting interest rates has helped both sectors be amongst the best-performing sectors thus far this quarter,&#8221; he said.
For investors looking to ride this momentum, ETFs like the Direxion Daily Utilities Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UTSL#NYSE">UTSL</a>) and Direxion Daily Real Estate Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRN#NYSE">DRN</a>) are worth considering.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/08/40635736/how-americas-home-market-could-change-for-the-better-if-more-buyers-followed-charlie-mungers-lead">How America&#8217;s Home Market Could Change For The Better If More Buyers Followed Charlie Munger&#8217;s Lead</a></li>
</ul>
Image: Shutterstock

EXCLUSIVE: Beyond The Magnificent Seven — Direxion's Egilinsky Reveals Top Sector Picks

JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) and Goldman Sachs Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) ranked among the top institutions in the Financial Select Sector Index that have enjoyed a robust recovery following a sharp correction in late July. The Bank of Japan's (BOJ)<a href="https://www.benzinga.com/news/24/07/40058319/bank-of-japan-raises-main-interest-rate-unwinds-longstanding-easy-policy-even-as-jerome-powells-take"> decision to raise its benchmark interest rate</a> sparked a significant market selloff, in large part due to the<a href="https://www.benzinga.com/markets/asia/24/08/40223986/traders-resume-yen-dollar-carry-trade-as-bank-of-japan-pledges-no-rate-hikes-during-market-volatilit"> unwinding of the popular yen carry trade</a>.
However, the BOJ's subsequent pledge<a href="https://www.benzinga.com/news/24/08/40209754/bank-of-japan-deputy-shinichi-uchida-says-we-wont-raise-interest-rates-when-financial-markets-are-un"> not to raise rates during periods of market instability</a> seems to have helped soothe nerves. In addition,<a href="https://www.benzinga.com/24/08/40396952/retail-sales-numbers-were-a-blowout-versus-consensus-but-economists-predict-fed-will-still-cut-rates"> blowout U.S. retail sales</a> relative to economists' expectations suggested that the underlying consumer base was more resilient than previously anticipated. That helped instill confidence in payment card service providers Visa (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) and Mastercard (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>).
Fundamentally, all eyes are focused on the Federal Reserve. As several experts have argued, the central bank has the<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40344753/fed-truly-has-a-green-light-to-cut-rates-by-0-5-after-july-producer-price-report-sa"> evidence it needs to green light rate cuts</a>. Key economic data – particularly the Producer Price Index and the Consumer Price Index – demonstrated that<a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40365730/july-inflation-rate-falls-more-than-expected-supports-hopes-for-large-fed-rate-cu"> rising prices accelerated at a slower clip</a> than previously forecasted. This disinflationary framework provides the breadth the Fed needs to justify a dovish monetary policy pivot.
However, it may not be all smooth sailing for the market. Earlier this year, Benzinga's Jeannine Mancini captured the<a href="https://www.benzinga.com/personal-finance/24/03/37826940/were-dealing-with-inflation-shrinkflation-and-sh-tflation-public-voices-frustration-over-rising-"> dichotomy</a> of the current paradigm. "Despite an ostensibly healthy economy, marked by strong consumer spending and the creation of 13 million jobs since President Joe Biden took office, public sentiment remains overwhelmingly negative," wrote Mancini.
Furthermore, the strongest name among the Financial Select Sector Index's top 10 holdings is insurance giant Progressive Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>). That's not necessarily a great sign for broader market stability as it indicates a flight to safety.
The ETFs: With such ambiguities in place, the financial ecosystem seems ripe for speculative opportunities, which is where Direxion's leveraged exchange-traded funds come into focus. First, the Direxion Daily Financial Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) provides 300% of the performance of the Financial Select Sector Index. Second, pessimistic traders can acquire units of the Direxion Daily Financial Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAZ#NYSE">FAZ</a>), which provides 300% of the inverse performance of the aforementioned index.
Primarily, the benefit of the FAS and FAZ funds is the potential to extract quick profits without engaging the complex options market. With leveraged ETFs, investors acquire the underlying units just like any standard publicly traded security. However, it's important to note that leveraged funds should not be held for longer than one day. Otherwise, the daily compounding effect may lead to significant value erosion.
The FAS Chart: After falling precipitously lower in late July, the FAS ETF has quickly regained its technical standing. Since the start of the year, the leveraged bull fund has gained over 40%.
<ul>
<li>On an encouraging note, the Daily Financial Bull 3X never touched its 200-day moving average during the fallout. Instead, on the bounce back, FAS shot quickly above its 50 DMA.</li>
<li>Investors will want to be cautious about the fading volume level since the Aug. 5 session. Typically, rising volume should confirm a rising price.</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcsCBQJA5ddGP5u1LTe2nONxlcU8ZD05uGlzvlWE-8i_Tx6YmZ9Ixk2pBJ8wNEHNfmEVzc1brEppTJWYdmL3IOYjV_cVscUm70Q5l6GCb44tVF_qRJEU4M2JrzV6ItNWiaj3YOhaoOMzD88-r-5Z6wKeVfj?key=N9gUy56Z221YBq3Igx44Ow" alt="" /></figure>
The FAZ Chart: Enjoying a significant pop higher (as expected by many) during the late July/early August rout, the FAZ ETF has recently lost much momentum. Since the beginning of January, the leveraged inverse fund has fallen nearly 35%.
<ul>
<li>During the aforementioned market correction, FAZ looked encouraging as it broke above a discernible horizontal support line marked by the $10.40 price tag. However, it's now struggling below $9.</li>
<li>Moving forward, it's critical that the inverse fund regains control of the $9 level. From there, it must target the psychologically important $10 milestone if the bears want to avoid technical damage.</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc3LfxRumUAmYI_7tNgF1oGgL3tFb2-vQPWRQyRJTj8ysT9ePqimrM661mlwW-YT05ZND3GwqGyaEXoIjh4D8sFpSpnQ1lgCach-vII3gBhnR9sj4s-frwah18E-ohyB-5jDcM5UK72Xp3C9psL0gkF4sNY?key=N9gUy56Z221YBq3Igx44Ow" alt="" /></figure>
Featured image by <a href="https://pixabay.com/users/maklay62-182851/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=1428594">S K</a> from <a href="https://pixabay.com//?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=1428594">Pixabay</a>.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

As Fed Potentially Preps Lower Rates Amid Economic Challenges, Direxion Bull & Bear 3X Shares Offer Amplified Trading Opportunities

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:
<iframe height="314" src="//www.youtube.com/embed/Jr3waPWOAxo" width="560"></iframe> 
Featured photo by<a href="https://unsplash.com/@aditya1702?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Aditya Vyas</a> on<a href="https://unsplash.com/s/photos/wall-street?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a>.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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

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.

FAS: No Upside

Direxion Daily Financial Bull 3X Shares declares quarterly distribution of $0.3829

Find out the sudden market reversal scenario and the ultimate defense for the S&P 500 if the rising wedge pattern is triggered.


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

Government Trades

Direxion Financial Bull 3X Shares

top performing FAS trades

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga