Insurance companies will also capitalize on rising interest rates. Insurance stocks have typically exhibited a positive correlation with interest rates where higher rates have translated to higher growth. Along with generating greater revenue through new higher yielding debt holdings in a rising rate environment, insurers may also capitalize on a healthier economic environment as consumers purchase big-tick items and buy a home, which may mean more insurance policy coverage.
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In XLF, “the August 22 put is most popular among all series, after a trader yesterday apparently rolled down a long position from the August 23 strike. This strike now harbors more than 187,000 XLF puts outstanding. The July 22 strike is also home to peak put open interest in the soon-to-be front-month series,” adds Schaeffer’s.
Financial Select Sector SPDR