Trade of the Week: Unusual Options Activity in Consumer Staples

Options, Strategies, Videos

This week, the options trade of the week concerns the consumer staples sector. A trader took a large bearish position on the Consumers Staple Select Sector SPDR ETF (XLP). XLP covers the sort of goods consumers buy regardless of economic conditions like toothpaste and soda. It also includes the places where most people buy those goods like Walmart (WMT) and Costco (COST)

The trader purchased over 14,000 puts at a strike slightly below the current price of the stock which expire at the end of the month. This could be a bet that the economy will avoid a recession and investors will rotate out of the consumer staples sector. Or, it may be someone who is buying into the position who expects negative economic news this month and is using the puts as a hedge against the downside.

$500 into $678,906?

If you had followed Jay Soloff’s 2018 trades, with a little luck, you could’ve turned $500 into as much as $678,906.

That sounds unbelievable. But you gotta see how it’s possible.

If you can scrounge together $500 in cash, it could’ve been worth a small fortune today.

Check out how it could’ve happened for you, click here.

[NEW REPORT] Absolute 10 Best Growth Stocks to Own in 2020

Get the best 10 stocks to ride the 2020 tech explosion. 

One could be the most valuable stock of the next decade. 

Normally, I charge $20 for this report…

But, today...you can claim a copy absolutely free.

One stock alone has a chance at 167% profits in the next 12 months (or sooner). 

Enter your email below to claim a free copy while they last.

You have Successfully Subscribed!