Unusual Options Activity In SPDR ETF, XLE

Global oil prices are under pressure due to no resolution in sight regarding the US-China trade war, ultimately sapping demand for oil and weaker than expected economic data that came out of Europe on Thursday.  As a result, U.S crude oil prices had their largest drop of the 2019 on Thurs, oil prices are now below $60 and oil price are at a three month low.

The Energy Select Sector SPDR® Fund seeks to provide an effective representation of the energy sector of the S&P 500 Index.  The top holdings include:


The SPDR Energy Select Sector ETF droppped 3.3% toward a 4 1/2-month low, and was by far the biggest decliners of the SPDR ETFs tracking the S&P 500’s 11 sectors, while the S&P 500 shed 1.3%. All 29 of the ETF’s (XLE) equity components were losing ground, led by shares of Hess Corp. , down 6.8% and Diamondback Energy Inc. , down 6.1%.


Thus, I wasn’t surprised to see the Smart Money buying a boat load of the January 2020 put options with a strike price at $55 in XLE yesterday.

This signifies to me that they think the trade war won’t be resolve anytime soon and the global economy will continue to deteriorate as a result.  And lastly the chart suggests that there is nothing to stop price on XLE as the nearest level of demand sits at the monthly level at $51. 

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Related posts

Jim Chanos Says To Short Grubhub Too


US patients struggle to obtain Eli Lilly’s half-price insulin

Mr. Crypto Lemon

SPDR Sector Relative Strength Analysis Report For Week Starting 8/26/19


Get involved!


No comments yet
Skip to toolbar