Big Options Bet Wagers on 25% Drop in This Year’s Hottest Trade
- $2 million put-spread bets on drop in XLE energy ETF
- Oil rally makes energy stocks this year’s biggest gainers
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As this year’s ascent in energy stocks becomes close to historic, one options trader is making a big bet that the rally isn’t going to last.
Somebody put on a position around midday Thursday wagering that the Energy Select Sector SPDR Fund will lose a quarter of its value between its current level and March 18. The trader appears to have bought 25,000 contracts in a strategy known as a put spread, wagering that the ETF, known by its ticker XLE, will fall below $47 before the quarter ends.