The two biggest trades in the options market today are in the Select Sector Financials (XLF, news, chart, volatility). A block of 105,000 October puts with the 17 strike traded offerside for 59 cents a contract shortly after 2:30 Eastern Time. 100,000 of the December 18 puts traded offerside for $1.25 around 11:00. Both of these trades seemed to be initiating buy orders and, if so, could represent put buying on the view that today’s rally in the financials will prove short-lived. With the XLF up $1.95 to $21.77 now that the SEC has prohibited the short selling in financials until early October, the put buying might be based on the view the sector will falter once again when the ban is lifted.
Category: All ETFs
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.