What’s The Reasoning Behind This Massive Energy Trade?

| August 18, 2022

Unusual options activity placed Energy Select Sector SPDR ETF (XLE) into the spotlight last week. It turns out a massive options trade of 150,000 contracts traded in a spread, with about $16 million of capital required.

This one trade accounted for nearly half the options traded on the day. It appears the position may be a very large hedge against a downturn in energy prices through December.

Watch this short video for more details.

This post originally appeared at Investors Alley.

Category: Unusual Options Trading Activity

About the Author ()

Jay Soloff is an options analyst with Investors Alley.