Bearish Options Play Paying Off As Abercrombie & Fitch Co. (ANF) Shares Lose Their Cool

Health Care SPDR (NYSEARCA:XLV) – Fresh interest in Health Care SPDR (NYSEARCA:XLV) puts today suggests at least one trader is positioning for the price of the underlying to extend losses during the next couple of months. Shares in the Health Care Select Sector SPDR Fund, up roughly 35% since this time last year, slipped 0.40% today to $49.08 at 12:25 p.m. ET amid a down day for U.S. stocks. The most actively traded options on the Health Care SPDR (NYSEARCA:XLV) in the early going this morning were the Jul $48 strike puts, with around 6,000 contracts changing hands versus open interest of just 103 contracts. The bulk of the volume appears to have been purchased by one strategist for a premium of $0.81 per contract. The bearish position makes money at July expiration should shares in the Health Care ETF slip 3.85% from the current level to trade below the breakeven price of $47.19. Shares in the Health Care SPDR (NYSEARCA:XLV) last traded below $47.19 on May 2nd.

Caitlin Duffy
Equity Options Analyst

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