The SPDR S&P Oil & Gas Exploration & Production Fund is lower today, but one trader is counting on limited downside.
The XOP is down 0.41 percent to $51.05. Shares traded above $52 in the last two days but have returned to last Friday's intraday range.
The option volume already tops the daily average with 35,000 contracts, more than 10,000 above its full-session average. optionMONSTER's systems show that 9,440 September 45 puts appear to have been sold for $1.65. Open interest in the strike was 6,525 at the start of the day, so this is a new position.
Put sellers collect risk premium while betting that the underlying stock will stay above the strike price. They would be required to buy the stock if it is below that level at expiration and they are assigned, though the effective purchase price would be $43.35, a quote not seen since the October low. (See our Education section)
America has no tolerance for wealthy people griping about their financial woes. But they have concerns too.