XLF
The Select Sector Financial ETF (XLF) is currently trading up $.42 to $22.90. The IV is 20.73 -? down 2.25% in today’s trading. We’re currently seeing heavy put activity in the March expiration cycle.
?A trader has bought 100,000 of the March 21 puts today paying .73 in what appears to be an outright trade.? This is the second 100,000 lot bought by this trader with another 100,000 trader .78 on Sep 22nd.? Against this trade there has been put buying all over the place
This trader clearly is hedging some risk of XLF dropping in the near term. He or she is making a bet that XLF could drop below 20 by March.? This trade should be considered aggressively bullish volatility and bearish the underlying.