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Mean Reversion

All articles tagged with #mean reversion

markets1 day ago•1 min saved

Software Rally Sparks Bold Options Bets as IGV Advances

The software stock rally continues, with the iShares Expanded Tech-Software ETF (IGV) up about 35% from April lows after Friday’s gains led by ServiceNow and Workday. Options activity is extremely bullish: IGV calls outrun puts by roughly 4-to-1, with more than 50,000 IGV calls traded and even higher volumes in individual software names, signaling strong upside bets despite some hedging. Traders compare IGV’s strength to semiconductor dispersion and expect mean reversion to persist, noting notable options contracts like the June 18 105 strike and December 90 strike as part of outsized bets.

via CNBC|

#igv #market-rally #markets

finance2 years ago•2 min saved

Navigating the Stock Market's Hot Streak: Tips for a Strong Second Half

The blistering stock returns in the first half of this year make a strong case for a bullish second half, according to historical data. Over the past 95 years, in 61 years the S&P 500 had positive returns in the first half, with nearly half of those years seeing double-digit percentage gains. On average, the second half of these years returned 6% with a win rate of 75%. Looking specifically at years following negative results, the average second-half return was 9.8% with a win rate of 80%. While mean reversion is a factor, the overall trend suggests that the strength seen in the first half tends to continue.

via Yahoo Finance|

#bullish #finance #mean-reversion