SPDR Consumer Staples Fund (XLP) adds 35 cents to $34.12 and options volume on the ETF is running 4X the daily average, with 37,000 calls and 290 puts traded on the stock so far. One player bought 10,000 Jan14 $37 calls on XLP for 89 cents per contract on NYSE-ARCA. Looks like a new position. 10,000 Jan 37 calls traded for 23 cents on ISE and was also an opening buyer, according to ISEE data. Another 10,000 traded for 23 cents on CBOE nad 6,600 for 23 cents on PHLX. 26,600 Jan 37 calls now traded on the fund. $37 calls on XLP are 8.4 percent OTM after a 5 percent year-to-date advance in shares. After a dip in the first week in April, XLP, which holds names like P&G, Coke and Walmart, has rebounded in recent days and is back within striking distance of the 52-week high of $34.35 set on 4/2.
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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.