From The Pragmatic Capitalist:
Some big money is moving into the XLF banking ETF before the banks begin reporting their earnings this week. 130,000 calls were purchased today with expectations of a greater than 7% rally in the shares. From the IB options desk:
XLF – Financial Select Sector SPDR – Shares of the financials exchange-traded fund are 0.75% higher today [October 12] at $15.36. Massive call transactions in the November contract this afternoon suggest some investors expect further bullish movement in the price of the fund by expiration.
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