Trade of the Week: The Energy Sector

Energy Investing, Trade of the Week

There was quite a bit of unusual options action in the Energy Select Sector SPDR ETF (XLE) last week. Energy has been in the spotlight with the price of crude oil plunging in recent days.  However, a large ratio call spread in XLE suggests that energy stocks may have more room to rise this year.  The bullish spread cost about $2.8 million in options premiums and doesn’t expire until October.