Traders See Downside in Industrial Sector ETFs
Options traders have been using industrial exchange traded funds (ETFs) to bet against the sector following quarterly earnings from bellwether and Dow component General Electric ( GE ).
Industrial Select Sector SPDR Fund (NYSEArca: [General Electric Weighs on Dow, Industrial ETFs.]
Options players "seem to be extending a bearish position in the sector out an additional month, and to a higher strike in the puts," Street One said on Monday.
The analysts noted the industrial ETF has outperformed the broad market year to date, rising 7.9% versus 6.4% for the S&P 500.
Industrial Select Sector SPDR Fund
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