This document is being provided for the exclusive use of GUILHERME MAMPRIN at LOYALL INVESTIMENTOS LTDA.

Not for redistribution.

Bloomberg News Story

01/31/2022 11:27:56 [BFW] Bloomberg First Word

YOLO Crowd Loads Up on Protection at a Record Pace: Taking Stock

By Elena Popina

(Bloomberg) -- A year ago, newbie traders took the stock market by storm, bidding up certain left-for-dead
equities and schooling some of the pros. Twelve months later, the group is known for other reasons. One is that it
has no appetite for buying dips.

As the S&P 500 spent the week struggling to take a break from a nearly month-long rout, small-lot
options traders -- those trading 10 contracts or less -- spent a record amount of money establishing
new bearish positions. The average daily premium spent on small-lot put contracts also reached the
highest level in recent history.
It’s the latest evidence that the day-trader frenzy -- a hallmark feature of the stock market since the
onset of the pandemic -- is changing. The newbie crowd is getting less interested in buying dips -- a
departure from the trend between the summer of 2020 and middle of last year.
The “steady declines in apparent retail participation on the call side alongside incrementally higher
participation on the put side” is supportive “of the idea that retail participants on the option side are
generally chasing momentum and not aggressively buying dips,” said Christopher Jacobson, a strategist
at Susquehanna International Group Inc.

Source: SusquehannaSource: Bloomberg

The daily average premium that small-lot traders shelled out for protection jumped to $963 million,
twice the level seen in October, Options Clearing Corp. data analyzed by Susquehanna’s Jacobson
show. The smallest traders with bite-sized bets spent a record $6.5 billion buying put contracts last
week, data compiled by SentimenTrader show.

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.

Bloomberg ® Printed on 01/31/2022 Page 1 of 4

 This document is being provided for the exclusive use of GUILHERME MAMPRIN at LOYALL INVESTIMENTOS LTDA. Not for redistribution.

Bloomberg News Story

Demand for protection has been rising as the stock market kept falling in a sign that day traders could
be bracing for more losses to come. Uncertainty about the Federal Reserve’s pace of rate hikes is
weighing on sentiment and the earnings season is shaping up to be mixed at best. Geopolitical jitters
aren’t helping sentiment, either. Goldman Sachs Group Inc. strategist David Kostin said Monday he sees
downside risks to his target for U.S. stocks, adding to a chorus of Wall Street voices becoming more
pessimistic.
But while the sentiment among the newbie crowd has been getting grimmer by the week, one-off events
could be contributing to spikes in bearish volumes, Jacobson notes. A disappointing earnings release
from Tesla Inc. was one such instance. The electric-vehicle maker -- which enjoys some of the biggest
options volumes in ordinary sessions -- saw a jump in put trading following its results.
Futures on the S&P 500 are trading lower before a busy week, after the cash index staged a late-session
rebound on Friday to finish the week in the green.

SECTORS IN FOCUS:

U.S-listed Chinese tech stocks climb in premarket trading Monday after regulators made positive
comments about the sector over the weekend.
Major U.S. technology and internet names rise in premarket trading, hinting that the Nasdaq 100’s
rebound could extend after Apple’s results buoyed sentiment on Friday.
U.S. hotels and casino operators could be in focus after Macau Legend Development tumbled by a
record 30% following the arrest of its CEO on suspicion of money laundering and illegal gambling
activities.
Shares of Philippine tourism and leisure-related companies may trade actively as the government
relaxes mobility restrictions amid slowing Covid cases.

COMPANY NEWS:

Joe Rogan pledged more balance and better research for his podcast in an apology aimed at quelling
growing controversy about misleading coronavirus information that wiped almost $4 billion from Spotify
Technology SA’s market value last week.
Elliott Investment Management and Vista Equity Partners are nearing an agreement to acquire software-
maker Citrix Systems Inc. for around $13 billion, people familiar with the matter said.
See the U.S. Movers column for today’s most active stocks

NOTES FROM THE SELL-SIDE:

Click here to see other analyst ratings news in the U.S

UPCOMING EVENTS:

Eco Data

9:45am: Jan. MNI Chicago PMI, est. 61.8, prior 63.1, revised 64.3
10:30am: Jan. Dallas Fed Manf. Activity, est. 8.5, prior 8.1
11am: Jan. Export Inspections - Soybeans, prior 1.3m
11am: Jan. Export Inspections - Wheat, prior 401,000
11am: Jan. Export Inspections - Corn, prior 1.12m

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.

Bloomberg ® Printed on 01/31/2022 Page 2 of 4

 This document is being provided for the exclusive use of GUILHERME MAMPRIN at LOYALL INVESTIMENTOS LTDA. Not for redistribution.

Bloomberg News Story

3pm: Dec. Agricultural Prices Paid, prior 8.1%

3pm: Dec. Cattle Inventory YoY, est. -1.2%, prior -1.3%
3pm: Dec. Agriculture Prices Received, prior 17.4%

Central Banks

11:30am: Fed’s Daly Speaks at Reuters Live Event

Earnings

Premarket
Atkore Inc. (ATKR US)
L3Harris Technologies Inc. (LHX US)
Trane Technologies Plc (TT US)
Postmarket
Agnc Investment Corp. (AGNC US)
Alexandria Real Estate Equities Inc. (ARE US)
Axalta Coating Systems Ltd. (AXTA US)
Cabot Corp. (CBT US)
Cirrus Logic Inc. (CRUS US)
Credit Acceptance Corp. (CACC US)
Fabrinet (FN US)
Graco Inc. (GGG US)
Heartland Financial USA Inc. (HTLF US)
Helmerich & Payne Inc. (HP US)
J. & J. Snack Foods Corp. (JJSF US)
Kemper Corp. (KMPR US)
Kilroy Realty Corp. (KRC US)
NXP Semiconductors NV (NXPI US)
PotlatchDeltic Corp. (PCH US)
Sanmina Corp. (SANM US)
Woodward Inc. (WWD US)
Other
Otis Worldwide Corp. (OTIS US)

Other:

Annual general meetings: ENR US, IBIO US, PTC US

Other/M&A: MCRB US, MDGL US
For a look at key upcoming global events, click here

To contact the reporter on this story:

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.

Bloomberg ® Printed on 01/31/2022 Page 3 of 4

 This document is being provided for the exclusive use of GUILHERME MAMPRIN at LOYALL INVESTIMENTOS LTDA. Not for redistribution.

Bloomberg News Story

Elena Popina in New York at epopina@bloomberg.net

To contact the editor responsible for this story:

Michael P. Regan at mregan12@bloomberg.net

This story was produced with the assistance of Bloomberg Automation.

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.

Bloomberg ® Printed on 01/31/2022 Page 4 of 4