Paper sold 3,000 XLI Jan29 W 51 puts for 1.33 & bought 5750 XLI Jan15 50 puts for .68 in a time back spread.?
Sector SPDR Trust SBI, trading 49.67, down .08 with an IV30 of 21.31 and an HV10 of 16.68, saw a ratio put spread trade.? The ETF, with an ADV of 20k contracts and OI of 270,000, saw a trader sell 3,000 of the Jan29 W 51 puts at 1.33 vs buying 5750 of the Jan15 50 puts for .68 in what is a time back spread.? This trade appears to be an opening trade based on the open interest relative to the volume of this trade.
The trader is likely betting that in the near term XLI could have a nice dip and then potentially rally.? It also is a unique way of doing a ratio married put as the 51 puts will act much like stock here and the puts will certainly product downside.
This trade should be considered long vol in the near term and neutral the stock.