XLU
- XLU is currently trading $43.30.
- Today a customer bought 30,000 of the Sep 42 puts paying $.28. This trade was tied up to stock in some form although the exact ratio is unknown at this time. ?
- Open Interest on the strike is 10,509 ?
- The ADV for XLU is 17232
- Based on the duration of the trade, the fact that the trade was an opening transaction, and the strike selection this appears to be a play on some sort of immediate drop in the XLU. ?With the rally in rates over the last few weeks, ?traders are likely betting that if rates back XLU will as well.
- This trade should be considered bearish XLU underlying and bullish XLU volatility.
- Traders looking to piggyback this trade could consider the sep-oct 42 put spread as an alternative to an outright long put play in XLU.
SLV
- The Ishares Silver Trust is currently trading $18.35.
- Today we saw intermediate-term call sellers today with a trader selling 8750 of the Jan 2016 19 calls at $1.52.
- Open interest on the strike is 17,909
- The average daily volume of SLV is 79,850
- These call sales are likely tied to a long position in the underlying. ?
- This trade should be considered mildly bullish SLV as the trader wants the underlying to move slowly higher. However, it should be considered extremely bearish SLV volatility, both implied and realized, over the next year.
CSCO
- CSCO is currently trading for $24.95.
- While certainly an active name in the near-term, we saw some action today in an off month and on an odd strike.
- A trader bought 5,000 of the CSCO April 27 calls paying $.58.
- The open interest on the strike is 5,209
- CSCO?s average daily volume is 62,274