Banking, finance, and taxes

Why Are Short Sellers Making Big Bets Against Major Banks?

John Sommer / Getty Images

The financial sector was a major part of the Great Recession, and it has been a major part of the recovery and raging bull market since then. Generally speaking, the major financial institutions within this country are a good barometer of the current state of U.S. markets.

So when short sellers make a play against these major banks, they are effectively betting for a downturn, and conversely when they back off they might be expecting a surge. Granted, some plays are directly against individual companies, like we saw with Wells Fargo early in 2017.

The December 15 short interest data have been compared with the previous figures, and short interest in most of these selected bank stocks increased.

Bank of America Corp. (NYSE: BAC) saw its short interest jump to 151.13 million shares. The previous level was 135.34 million. Shares were last seen trading at $29.78, in a 52-week range of $21.77 to $30.03.

The number of JPMorgan Chase & Co. (NYSE: JPM) shares short increased to 29.00 million from the previous level of 26.68 million. Shares recently traded at $107.27, in a 52-week range of $81.64 to $108.46.

Citigroup Inc. (NYSE: C) short interest increased to 33.22 million from the previous level of 26.91 million. Shares were trading at $75.11, in a 52-week range of $55.23 to $77.92.

Wells Fargo & Co. (NYSE: WFC) short interest increased to 42.62 million shares from the previous reading of 34.53 million. Shares were trading at $61.29, within a 52-week range of $49.27 to $62.24.

Short interest in Goldman Sachs Group Inc. (NYSE: GS) increased slightly to 6.67 million shares from the previous 6.57 million. The stock recently traded at $256.29, within a 52-week range of $209.62 to $262.14.

Morgan Stanley (NYSE: MS) short interest for this settlement date decreased to 15.39 million shares from the previous 14.25 million. Shares were changing hands at $52.66, in a 52-week range of $40.06 to $54.25.

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.