Oil has been in a bear market for almost 3 years.
Oil being down has KILLED the entire energy complex.
XOM, CVX…you name the oil company…
…it has had a BAD few years.
Tuesday’s oil surge saw stocks in XLE, the Energy Sector ETF, take off.
XOM up 5%
CVX up 3%
RIG up 13%
XLE itself was up a whopping 4.5% (a huge move for an ETF).
The option volume in XLE was also immense:
XLE traded 4X is average option volume….most of it in calls.
There were some huge call trades, ALL of them bullish:
In the biggest trade a customer sold to close the XLE 40 calls 38,000 times,
He then took the proceeds and bought:
The 42 calls, the 43 calls, and the 45 calls…en mass
In total the customer sold 38,000 40 calls to buy 121,000 calls that were further out of the money.
This is a MASSIVE bet on the XLE continuing to run hot.
I am not one to bet against this trader who has already been right once.
Personally I would rather ‘drill’ down in XLE and pick a few winners.
In our chat room today I called out the XOM 45 calls and the RIG May 3 calls.
Your Only Option,
Mark Sebastian
Oil has been in a bear market for almost 3 years.
Oil being down has KILLED the entire energy complex.
XOM, CVX…you name the oil company…
…it has had a BAD few years.
Tuesday’s oil surge saw stocks in XLE, the Energy Sector ETF, take off.
XOM up 5%
CVX up 3%
RIG up 13%
XLE itself was up a whopping 4.5% (a huge move for an ETF).
The option volume in XLE was also immense:
XLE traded 4X is average option volume….most of it in calls.
There were some huge call trades, ALL of them bullish:
In the biggest trade a customer sold to close the XLE 40 calls 38,000 times,
He then took the proceeds and bought:
The 42 calls, the 43 calls, and the 45 calls…en mass
In total the customer sold 38,000 40 calls to buy 121,000 calls that were further out of the money.
This is a MASSIVE bet on the XLE continuing to run hot.
I am not one to bet against this trader who has already been right once.
Personally I would rather ‘drill’ down in XLE and pick a few winners.
In our chat room today I called out the XOM 45 calls and the RIG May 3 calls.
Your Only Option,
Mark Sebastian
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