Why There Could Be More Volatility Ahead For Energy

The Energy Select Sector SPDR Fund XLE has recently been under pressure due to a decline in oil prices.

On CNBC's "Options Action," Tony Zhang of Options Play said it was a “relatively quiet day on the energy fund,” but the Energy Select Sector SPDR Fund “really stuck out, accounting for nearly 15% of the entire day’s volume.”

Check out other stocks making moves in the premarket.

There were buyers of 7,500 of the November weekly 76-Straddles at an average price of $11.10 per contract, Zhang mentioned. Traders expect the Energy Select Sector SPDR Fund to trade above $87.10 or below $64.90 by November expiration.

XLE Price Action: Energy Select Sector SPDR Fund gained 0.72% to settle at $74.29 on Wednesday.