Large ratio spreads in the SPDR Financial ETF early-Wednesday
Large ratio spreads in the SPDR Financial ETF early-Wednesday. The Dec 20 - 21, 1X3, call spread is bought for 4c, 23795X. The spread has traded 40000X so far as the investor is selling 1 and buying 3. The Dec 21s, which traded 120K total, are being bought to open for prices ranging from 7 to 9c per contract. Meanwhile, the Dec 20s at 29 to 31c are likely closing a position opened on 9/29 when 51.6K traded, including a buyer of 24.7K for 25c. Shares are up 2.3% since that time and rolling to a larger position in Dec 21s today is expressing an even more aggressively bullish short-term view for the sector. Many of the big banks report earnings on 10/14 and 10/17.