Healthcare SPDR Receives Heavy Play Today

The Select Sector Healthcare SPDR (NYSE Arca: XLV) is receiving heavy options volume this afternoon. 2,000-5,000 contract blocks have been trading hands all day and one large, 27,000 contract block, looks to have been bought for 0.65, giving the sector a bullish tinge for the day.

The XLV, Select Sector Healthcare SPDR, has been on a run with the overall market, despite the political rhetoric afoot. A look at the chart shows that the XLV has risen to a level on par with pre-crash levels. I would be cautious on the space, vol is very low in the ETF and new longs should purchase puts along with stock. More aggressive traders may want to buy straddles.