The Energy Select Sector SPDR (ETF) (NYSE: XLE) is off 16 percent year-to-date, by far the worst performance among the nine legacy sector SPDR exchange-traded funds. With another Organization of Petroleum Exporting Countries (OPEC) meeting looming this week, some options traders are betting on more downside for the goliath energy ETF.
Options And OPEC
Leading up to Friday's OPEC meeting, put activity in XLE has been brisk “with 83,000 puts already trading on the day, vs the one month average of 61k per day and 27k calls traded today,” according to Risk Reversal.
“There are a couple decent size trades in XLE Dec puts that caught my eye this morning, with the most active strike the Dec 65 puts, with 51,000 having traded so far,” the note continued.
There are plenty of ...
/www.benzinga.com/trading-ideas/long-ideas/15/12/6017948/traders-brace-for-opec-downside-in-big-energy-etf alt=Traders Brace For OPEC Downside In Big Energy ETF>Full story available on Benzinga.com
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