On CNBC's "Options Action," Mike Khouw said that SPDR S&P Oil & Gas Exploration & Production ETF XOP traded six times its average daily put options volume on Thursday.
During the session, he noticed that a trader sold to close 15,000 contracts of the September $73/$50 put spread to buy 22,000 contracts of the March $70/$55 put spread. The trader has spent $5 million in incremental premium to roll the position to March. This is either a big hedging trade or a big bearish bet, said Khouw.
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