SPDR Retail Trust (XRT) adds 83 cents to $57.34 and one strategist buys the July 52 – 55 (2X1) put ratio spread on the ETF for 10 cents, 20000X, to open. The activity likely rolls out of a Jun 55 – 58 (2X1) that was sold at 75 cents, 5000X. The new position (in the July spread) appears to be targeting a move to $52 (~9.3%) through the expiration (36 days) and is probably a hedge. XRT notched 52-week highs of $62.84 in late-March, but has seen choppy action and is down 8.8 percent since that time. The skew in the product is now signfiicant, with a July 25 delta call sporting implied vols of 24, compared to 34 for a comparable 25 delta put.
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.