SPDR Energy Fund (XLE) loses $1.45 to $68.45 on a rough day for energy-related names after the sell-off in crude oil intensified and the commodity lost 6 percent on the week. Recent options trades on XLE is a three-way, in which 5,000 May 72 calls were apparently sold on the ETF to buy a May 63 – 67 put spread for 61 cents, 5000X. The spread has traded 10000X today and seems to express the view that weakness in the energy sector will continue over the next two weeks.
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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.