Calls Purchased on Biotech Names (XBI)

Shares of the SPDR S&P BIOTECH ETF XBI are higher on the session by 1.96%, currently trading at $55.71. The ETF has been gyrating lower over the past seven weeks, but appears to have found support on the $52.50 handle, which is a historical support/resistance level. Options traders are buying upside on the XBI today as well. The July $55 strike was purchased 1,200 times a short while ago, on the offer, for $1.70. Open interest on the strike is only 21 contracts, signaling new positioning. The SPDR S&P BIOTECH ETF seeks to replicate as closely as possible, before expenses, the performance of an index derived from the biotechnology segment of a U.S. total market composite index. The fund uses a passive management strategy designed to track the total return performance of the S&P Biotechnology Select Industry index. The Biotech index represents the biotechnology sub-industry portion of the S&P Total Market index. It is nondiversified.