SPDR Metals and Mining ETF (XME) is off $1.40 to $55.95 and one strategist pays 54 cents per contrract for 33,000 Jan 30 puts on the fund. 33,675 now traded against 224 in open interest. The put purchase doesn’t look tied and is possibly a hedge, or disaster insurance. Jan 30 puts on XME are 46.3 percent OTM with a delta of -.04. Shares are down 22.5 percent since July 22, but have not traded south of $30 since April 2009. The ETF holds a lot of gold mining names. Allied Nevada, Royal Gold and Coeur D’alene are among the biggest components.
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.