On CNBC's "Options Action," Tony Zhang said he saw some unusual activity in Energy Select Sector SPDR Fund XLE on Wednesday. It usually trades fairly actively, with an average volume of around 210,000 contracts per day, but on Wednesday, it was pretty quiet as only a little bit more than 100,000 contracts were traded.
Zhang saw one large, unusually bearish trade during the session. A trader laid out more than a quarter of a million dollars to buy 1,347 contracts of the September $44 puts for $2.02. The trade breaks even at $41.98 or 14.59% below the closing price on Wednesday.
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