SPDR Basic Materials Fund (XLB) adds 27 cents to $36.51 and 51,000 Apr 35 puts are sold on the ETF at 6 cents per contract. It’s probably a liquidating trade ahead of this week’s expiration. Open interest is 68,616, which is the largest position in the name, and the contract is now 4.1 percent out-of-the-money. It appears that a sizable chunk were opened on 3/6 when 30,000 contracts traded at the 92-cent asking price. Shares are up 55 cents since then and time decay hurt the position as well. XME and XLE April puts are also seeing volume Tuesday morning and possibly closing trades as well.
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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.