Monitor Oil ETFs Flows

We have periodically pointed out XLF (SPDR Financial) options flows in this piece and Thursday there was some size trading in February downside puts.

The sector was hit especially hard yesterday and is now about 3% off of its mid-October intraday high.

Bears also seemed to be present in XOP (SPDR Oil & Gas Exploration/Production) as the December 66 puts saw some action. We profiled put buying in this ETF just recently and the fund continues to stagger (was trading in the $72-$73 range towards the end of October and now has a $66 handle).

In what is likely related flow, OIH (Market Vectors Oil Services) saw tremendous volume yesterday and put buyers were also present there (November 49 strikes). OIH has seen more than $150 million leave the fund in
recent days thanks to redemptions as well.

SPDR S&P Oil & Gas Exploration & Production ETF