On CNBC's "Options Action," Tony Zhang said there were “sizable bullish bets” for the Financial Select Sector SPDR Fund (NYSE:XLF) on Wednesday.
The bets were for the January expiration and came on an otherwise very quiet day due to the holidays, Zhang said.
Calls outpaced puts by around 1:6 and one traded accounted for almost 10% of the total volume, he added.
There was a buyer of 9,848 contracts of the January 39.5 calls at an average price of 62 cents per contract, Zhang said. This represents a $600,000 premium to control “a notional value of $38 million,” he added.
The trader sees Financial Select Sector SPDR Fund appreciating by at least 2.3% by January expiration.
