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.