Range-bound trade in energy drillers
Chris McKhann | email@example.com
The XOP trades at $56.21, up 0.77 percent this morning. The exchange-traded fund was down at $52 a month ago, then climbed to just shy of $60, its highest level since March. Shares have been trending higher for the last three months from support around $45.
Two big option trades top the tape today. The first involved 10,154 December 50 puts that appear to have been sold for $1.16, it could have been a closing trade because it was well below the strike's open interest of more than 74,000. About 50 minutes later a block of 7,500 October 53 puts was sold for $0.26 at more than open interest at that strike, so it was a new position.
The put selling is a bet that XOP won't see much in the way of downside in the coming weeks. The trader is also showing the willingness to buy shares if they are below $53 in the short term. (See our Education section)