Higher volatility seen in energy ETF
Chris McKhann | firstname.lastname@example.org
optionMONSTER systems show that a trader bought 9,500 December 78 puts for the ask price of $2.07. The volume was almost 3 times higher than the previous open interest at that strike, so it is a new opening position.
Just after the puts changed hands, the largest block of XLE stock as more than 300,000 shares traded for $82.12. So it appears that the puts were traded against the stock in a long-volatility play. (See our Education section)
The XLE was down fractionally to close yesterday at $81.62 after bouncing off support at $80 last week. Shares of the exchange-traded fund have found resistance at $84 in the last several months, posting a high just above that level in late July.
More than 46,000 XLE options traded on the day, compared to a daily average of 14,123.