Energy Select Sector ETF (XLE) lost 22 cents to $53.73 a share after crude oil slipped 65 cents to $77.71 a barrel Friday. One options strategist seems to expect volatility in the fund and bought the August 53 – 55 strangle at $1.69, 10000X on PHLX. Looks like a new position. XLE is one of nine Select Sector Funds. Collectively, the nine funds hold all of the S&P 500 stocks. XLE holds all of the energy-related names. Implied volatility in the fund is now 26, compared to S&P 500 volatility, as measured by VIX, at 24.5.

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1 user commented on " Select Sector SPDR Energy Fund (XLE) $53.70 -0.46% "
Follow-up comment rss or Leave a TrackbackMakes sense Fred. I’m seeing a lot of mini DJX strangle action too. The 100-105 SEPs were very active on OI last time I checked.
Probably elections, but vol is cheap right now.