Yesterday was an interesting day in
XLF. Fred Ruffy of
WhatsTrading.com saw that
108,000 traded on the September $14 Call at $0.15. Fred mentioned this on
Twitter along with a 50k ratio put spread on $WFC. Open interest increased today over 100k so the trade wasn't closing out an existing seller, was it a new seller?? The trade could be hedging a potential head and shoulders top which could eventually test the $13.88 neck line.
If it was bought-to-open, the $1.62 million (108k*100*.15) used to buy these contracts have 5 business days to exercise below $13.85 or sell out on a volatility spike. It is currently trading at $14.54.
108,000 XLF SEP 14 Put (Courtesy of OptionsXpress)
XLF Chart
Steven Place of
InvestingWithOptions.com and
StockTwits.tv mentioned similar out of the money put activity in some regional banks (BB&T and Huntington Bancshares). It's interesting because there are 5 DAYS LEFT until expiration. I embedded this episode from
StockTwits.tv.
Source: Stocktwits.tv
