Also read these articles:
5/1 - Retail SPDR Gets Bearish Attention (XRT)
4/28 - US-Consumer Discretionary ETF draws put spread (XLY)
4/22 - Financial worries spark bearish option trades in ETFs
Now a look visually at each option chain with activity skewed toward out-of-the-money puts (except FAZ which is upside down w/ calls). The first chains are the retail and consumer sector and the other chains show activity on the industrials, FAZ (3x Bearish Financials call buying) and regional banks (hat tip ONN.tv/OptionMonster for that one). So something is definitely up. All snapshots are from Yahoo Finance on May 1, 2009. The volume and open interest will change next week.
XRT (SPDR S&P Retail) June Option Chain
XLY (Consumer Discretionary SPDR) May Option Chain
XLY (Consumer Discretionary SPDR) June Option Chain
XLI (Industrial SPDR) May Option Chain
KRE (Regional Bank ETF) May Option Chain
KRE (Regional Bank ETF) June Option Chain
FAZ (3x Bearish Financials) May Option Chain
The question is will we correct between now and 1,050 on the S&P? (Goldman Sachs’s Cohen Says S&P 500 May Surge to 1,050 -Bloomberg). I wouldn't want to fight w/ Cohen's target after reading this...!