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November 21, 2012  Wed 10:45 AM CT

XLE: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Energy Fund is facing a large put trade today as its shares remain in a downtrend.

More than 10,000 December 64 puts have traded against open interest of 2,755 contracts, according to optionMONSTER's systems. The big block of 8,750 was bought for the ask price of $0.22.

The put buying isn't tied to any trading shares of the exchange-traded fund that we saw today, though it could be a hedge against an existing long position in the XLE or its underlying stocks. The long puts could also be an outright bearish bet that the fund will fall below $64, which it hasn't done since June. (See our Education section)

The XLE is up fractionally at $70.41 in midday trading. It bounced off support at $68 at the end of last week but remains in a downtrend from the high above $77 reached two months ago, and it remains below its 20-day moving average.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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