Block Trade Fever (XLF)
Shares of the Financial Select Sector SPDR Fund (XLF) are trading lower on the session by 0.13%, at $15.66. The ETF has been ticking higher since early-June, culminating with a gap up to a five-year high last Thursday.
Block trade fever is hitting the ETF this morning with several large blocks trading in October, November, and December.
In October, the $15 put was purchased 5,397 times, on the offer, for $0.16. Volume on the strike has since risen to over 15,000 contracts; open interest is 52,587.
In November, the $16 call was sold 10,000 times, on the bid, for $0.32 (open interest of 47,757); this was linked to the purchase of 20,000 December $17 calls, purchased on the offer for $0.14 (open interest of 11,115).
Finally, the November $17 call traded 10,000 times between the bid/ask spread for $0.065. Open interest on the strike is 22,671 contracts.
Implied and historical volatility are registering 17% and 10%, respectively. This is down from 38% and 39% just nine months ago.
The Financial Select Sector SPDR Fund seeks to provide investment results that before expenses correspond generally to the price and yield performance of publicly traded equity securities of companies in The Financial Select Sector Index. The fund generally invests substantially all but at least 95 of its total assets in the securities comprising the index.