On CNBC's “Options Action,“ Tony Zhang said he saw some unusual activity in Energy Select Sector SPDR Fund (NYSE: XLE) on Wednesday. It usually trades fairly actively, with an average volume of around 210,000 contracts per day, but on Wednesday, it was pretty quiet as only a little bit more than 100,000 contracts were traded.
Zhang saw one large, unusually bearish trade during the session. A trader laid out more than a quarter of a million dollars to buy 1,347 contracts of the September $44 puts for $2.02. The trade breaks even at $41.98 or 14.59% below the closing price on Wednesday.
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