What's behind huge put trade in the XLI
Chris McKhann | firstname.lastname@example.org
The XLI is down 0.55 percent to $34.61 in afternoon trading, off the session low of $34.27. The exchange-traded fund has been trending lower from above $38 since mid-March and is now pushing back to levels from two weeks ago, when the stock saw its lowest close since 2011.
A trader bought 44,474 September 29 puts for the ask price of $0.67 on a tight bid/ask spread, according to optionMONSTER's systems. The volume was more than 3 times the previous open interest, so this is a new position.
The put buying wasn't tied to any trading in the underlying shares that we identified today, so it could be an outright bearish position looking for the XLI to hit new 2012 lows. It could also be hedging against long positions in either the fund or its component stocks. (See our Education section)