Select Sector Tech Fund (XLK) continues to see interest in the Jun 23 and 24 calls, with 46.6K and 76.7K traded, respectively. Both contracts have been busy over the past week and are the biggest open interest position in the ETF. Today’s flow includes a Jun 23 – 24 spread sold at 9.5 cents, 40000X. While it was tied to shares at $21.60 (+.29), the action is possibly a roll down in strike prices. Open interest in the 24s had swelled to 191K by last Friday and is now 148K. The contract is $2.40 out-of-the-money after a two week 6.9 percent slide in the share price. The spread seller might be closing out a position in the 24s and opening a bullish trade in the 23s, which are $1.40 OTM with a little more than three weeks of life remaining.
Category: All ETFs
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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.