Traders are hedging against a weak holiday shopping season using the SPDRs Consumer Discretionary Fund.
optionMONSTER's Depth Charge monitoring system detected the purchase of 13,400 Weekly 78.50 puts expiring on Jan. 8 for $1.03. There was no open interest before the trade appeared, which means that new money was put to work.
XLY is down 0.72 percent to $80.89 in afternoon trading but is up 8 percent in the last three months. Major holdings include retailers such as Amazon.com, Home Depot, and Nike. Media names like Walt Disney and Comcast are also present.
Today's puts are timed to match the end of the holiday shopping season, during which some companies may pre-announce quarterly results.
Overall XLY option volume is about average. The Depth Charge shows puts outnumbering calls by a bearish 11-to-1 ratio.
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