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XLE, the energy sector ETF, has been on a tear the last few weeks.
Since bottoming at 26.98 on October 29th the stock is up more than 50%.
On Tuesday the stock closed above 40.46 less than 2 dollars from the high a few days prior.
Yet, there was a pretty larger order that caught my eye.
A trader sold 21,500 March call spreads…likely to close.
The trader sold the March 145 calls and bought the 150 calls collecting .85 cents.
I believe this is a close from a trade that was opened on November 18th
I believe the trader paid about .40 for this call spread, so this trader has themselves a nice win.
I am surprised they closed the whole thing.
I would make note of the fact that the trader bought these on an ugly day for XLE, and then sold them less than a month later at slightly greater than 100%.
That is not a bad trade.
Could it be an omen that energy could be getting tired?
The way XLE has rallied, I would not be surprised.
Your Only Option,
Mark Sebastian
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