Thursday was a bad day for stocks, but oil did not get the memo. The United States Oil Fund (NYSEArca: USO) climbed nearly 2% to its highest levels of the year, finishing April with a gain of nearly 20%.

Oil’s April surge lifted the Energy Select Sector SPDR (NYSEArca: XLE) to a gain of almost 6% and the recent bullishness for the largest equity-based energy exchange traded fund is chasing bearish options traders.

“On Wednesday, when bulls in the options for the XLE outpaced bears by a ratio of 2 to 1, a trader sold 5,000 contracts of 75-strike puts expiring in June for a price of 45 cents each. As this was a closing trade, the trader is indicating that he or she no longer expects the XLE to see a price below $75-or nearly 10 percent lower than where the ETF finished the day on Wednesday-any time in the next two months,” according to CNBC.

After tumbling 8.7% last year, making it the worst of the nine sector SPDRs, XLE is up 5.1% this year, making it the second-best SPDR behind the Health Care Select Sector SPDR (NYSEArca: XLV).

Even with last year’s struggles, the energy sector is still expensive on valuation and perhaps even more so when considering the dismal profit and revenue expectations for the group. [Energy ETFs Still Expensive]

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