Trade of the Week: XLF

07/10/2020 10:19 am EST

Focus: STOCKS

Jay Soloff

Options Portfolio Manager, Options Floor Trader PRO

Jay Soloff discusses interesting options activity in the financial sector.

There was a fair amount of options action ahead of the long holiday weekend. A massive amount of puts traded in the financial sector, more specifically, on the Financial Select Sector SPDR ETF (XLF).

Some of the large trades could be setting up a hedge against downside risk through August. One interesting trade in XLF appears to be a put butterfly, which is a cheaper way to profit if XLF drops into a range below the current price. Financial stocks could continue to come under pressure with interest rates stuck at ultra-low levels.

Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker. 

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