SPDR S&P Retail (XRT) $35.17 -0.26%
Big Print in the SPDR Retail Trust (XRT) after an investor buys 115K Mar 28 puts at an average of 12.5 cents per contract. Shares are off 8 cents to $35.18 and this premium purchase is likely to create the biggest open interest position in the exchange-traded fund.
Update from Henry Schwartz (11:00): A burst of nearly 400,000 contracts traded near 10am today in downside puts on the XLY, XLB, KRE, and XRT ETFs covering Consumer, Materials, Banks, and Retail sectors. Data shows the trades were buyer-initiated, opening, and non-customer, and are struck about 20% out of the money. Each put was priced below 25c, making total premium outlay just $6.2million, but the notional value these positions may hedge totals nearly $1.2Billion. (Note: Hearing this was a hedge for a variance trade.)
Category: All ETFs
Comments (6)
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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.
There’s more to this trade. Henry is writing something.
I look forward to it. I’m mostly buying 95 share lots per 1 put…..;)
Very low risk IMHO.
It’s updated. The big blocks of puts in XLY, XLB, KRE, and XRT were bought to hedge a variance (volatility) trade. That’s all. Not a directional bet.
Thanks for the info. Guess I have the same idea, but I’m buying some steel names (95 quantity stock per one put)……Neutral mainly.
WOW WOW Fred, I need to look at CTRP options….hmmm
ahhh nevermind, it’s a split (like my brk/b)