Stocks quoted in this article:
Wells Fargo & Co (WFC), Fifth Third Bancorp (FITB), SunTrust Banks (STI), CIT Group Inc (CIT), and Potash Corp. of Saskatchewan (POT) were among the stocks seeing a bias toward put buying on Monday.
Financials have been in the spotlight for some time and the scrutiny is ramping up here. Fifth Third in particular caught my eye. As noted earlier this month this heavily-shorted stock rallied off its lows. A look to the daily chart shows the equity has pulled back to retest near-term support. There is obviously a lot of headline risk in the group but a successful hold here would suggest buyers are still willing and able to step in.
Potash Corp. of Saskatchewan is another potentially interesting situation. The minor uptick in skepticism comes as the shares are near the upper end of their trading range. This is a stock that has demonstrated an ability to post strong moves so a breakout could be an interesting event to watch for, especially if we see put activity continue to build.
This filtered scan is based on the International Securities Exchange (ISE) buy-to-open data. It looks for stocks where the previous day's put volume on the ISE is at least twice as great as the call volume. It then sorts the stocks based on the put volume. Since this is buy-to-open data, this can be a good source for finding stocks where skepticism is emerging. Of particular interest to me would be situations where we see put activity on stocks that are still in intermediate-term uptrends. This would be a potentially encouraging sign from the contrarian perspective.
Other companies seeing a skew towards puts in the previous session: PowerShares QQQ Trust (QQQQ), QUALCOMM Incorporated (QCOM), Cisco Systems (CSCO), Owens-Illinois (OI), SPDR Gold Trust (GLD), Ford Motor Co (F), Continental Airlines (CAL), Pinnacle Entertainment (PNK), Johnson Controls (JCI), Tyson Foods (TSN), Home Depot (HD), IBM (IBM), Mohawk Industries (MHK), R.R. Donnelley & Sons (RRD), Juniper Networks (JNPR), Darden Restaurants (DRI), Boston Scientific (BSX), Costco Wholesale (COST), Marriot International (MAR).