Big Option Activity In Industrials ETF (June $40 XLI Calls) - Charts

XLI near 2007 high (freestockcharts)
XLI, the industrial sector ETF, is in play. I saw this on my ISE widget first (98,181 calls and 3,033 puts were opened by customers on the International Securities Exchange as of 1:30 PM EST 4/28/2011). As of 2:30pm, 108,395 June $40 calls traded with 288 contracts open. The call option was last trading at $0.37 (+0.13).

XLI ISE Put/Call Ratio (ISE)
The ETF is trading at $38.47. Technically speaking, the calls could be betting on a confirmed breakout above $38 and a trend line continuation. When looking at the monthly chart, I see that the 2007 high was $42. If XLI tests $42 by June 17, 2011, the trader will make a killing if it was 100% long exposure. Who knows. It could be part of a net short position or a large hedge. Look at the trend line from the March 2009 low. XLI better not break that!

For more information on this trade read "Industrials Call Trades Jump Before Caterpillar Report" at Bloomberg.com. See more snapshots below.


XLI June Calls (expire June 18, 2011) (via Google Finance)

XLI short term (FreeStockCharts.com)

XLI long term

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