After suffering a 9.2 percent loss in May, SPDR Financials (XLF) is down another 50 cents to $13.51 on the first day of June. One player in the options market is bracing for additional losses. A Jul 9 – 11 – 13 put butterfly spread was bought on XLF this afternoon for 29 cents. If opening, the spread offers a max payout if XLF falls another 18.6 percent ( to $11) through the July expiration (49 days). XLF finished 2011 trading for $13 and, despite an impressive rally in the first quarter, is now up just 3.9 percent year-to-date.
Category: All ETFs
About the Author (Author Profile)
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.