Why Two BlackRock Competitors Told Clients to Buy It
Traders have started betting on a rebound in the world's largest asset manager, BlackRock since its July earnings beat. They are doing it while the BlackRock stock price falls, and weeks after two of the firm's biggest rivals told clients to buy.
JPMorgan and Morgan Stanley both lifted their targets on July 16, and the market ignored them for eleven days.
The Bets Nobody Has Closed Now Favour a Rise
The put-call ratio weighs bets on a falling share price against bets on a rising one. A reading under 1.00 means the upside bets are winning.
On BlackRock stock, that measure sat at 1.00 on the day of the July 15 results, an even split. By July 24 it had slipped to 0.98, tipping the balance toward a rise.
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This particular reading only counts positions traders still hold after the market closes. That makes it the money people are willing to leave on the table overnight.
Short-term traders are less convinced. Counting only the trades placed each day, the same ratio climbed from roughly 0.70 to 0.83, so more downside bets are changing hands than before the results.
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