Paper bought 83,000 XLI May 6 weekly 53 puts & sold 83,000 of the May 6 weekly 50 puts for a debit of .35.
The Industrial Select Sector Spyder ETF, currently trading 54.98 (down .16) with an IV30 of 15.82 and an HV10 of 13.09, saw a large put spread trade in May.? The ETF, with an ADV of 25,000 and OI of 374,000 contracts, saw a customer buy 83,000 of May 6 weekly 53 puts for .55 and sell 83,000 of the May 6 weekly 50 puts at .20.? Net the trade is a 53/50 put spread expiring May 6 for a debit of .35.
This is likely a hedge for a customer that has long exposure to the industrials.? The timing swallows up two employment readings and the next FOMC meeting.? The trader is looking to be hedged below $53 but does not believe that the underlying is going to drop below 50.
Trade should be considered bearish XLI and bullish XLI volatility.