SPDR Oil and Gas, which was trading at 77.04 earlier today, has an average volume of just under 15,000 contracts a day and a normal put to call ratio of 1 to 3. ?Today a trader sold 15,000 of the June regular 80 calls at .24.? This was likely done as a synthetic buy-write by a customer that holds a large position in the name.?
This trade will profit if XOP slowly rises to 80 over the next few days.? It should be viewed as mildly bullish the underlying and bearish the volatility.
Traders looking to piggy back could by the 75/80 call spread in June, or even the 75/80/85 call fly to take advantage of a slow rise higher in the name.