Market News

November 25, 2016  Fri 5:47 AM CT

A huge position sees more upside potential in the SPDR Financial Fund.

OptionMonster's market scanner detected the purchase of 83,000 May 24 calls in one print for $0.23 on Wednesday. Volume surpassed the strike's open interest of 60,021 contracts, showing that this is a new position.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

XLF rose 0.58 percent to $22.38 on Wednesday and is up 14 percent in the last three months. Overall option volume was about average in the fund, but calls outnumbered puts by a bullish 4-to-1 ratio.

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