Market News

October 4, 2012  Thu 9:26 AM CT

The SPDR Financial Fund is pushing back toward last month's highs, and one trader is betting on a floor beneath its shares.

The XLF is up 1.5 percent to $16.07 and on pace for its highest close since Sept. 17, the day after it hit a 52-week high of $16.44. The exchange-traded fund was below $11 a year ago.

A trader sold 20,000 March 12 puts for $0.11 this morning, according to optionMONSTER's systems. The  volume was more than triple the open interest in the strike at the start of the session, clearly indicating a new position.

This put selling is a bet that the XLF will hold above $12 in the coming months. It was last below that price on a quick dip in late November. (See our Education section)
News Archives
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »