Surging Put Volume in the Financial ETF (XLF)

| February 6, 2013 | 0 Comments More

Options volume in the SPDR Financials (XLF) Tuesday was impressive as more than a half million contracts traded and put volume trounced call volume by a ratio of almost ten-to-one. 467K puts and 48K calls traded on the ticker yesterday. The flow created 240K contracts of new open interest in puts on the ETF (see 2/5 color for details on some of the activity). The interest continues early Wednesday, as an investor bought the Apr 16 – 17 (2X1) put ratio spread on XLF for 6 cents, 20000X. And, another 11,300 March 17 puts on XLF also changed hands. Total volume is even more lopsided than yesterday, as 75,000 puts and 1,835 calls traded on the financial ETF in the first hour.

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Category: All ETFs

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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.