“Echoing this skeptical stance, the stock’s May 43 and 45 puts are home to peak front-month open interest, and data from the major options exchanges suggests these strikes were used to initiate a long put spread back in mid-April and again at the end of the month. If this is the case, the goal is for XRT to settle right at $43 at next Friday’s close,” reports Schaeffer’s.

XRT currently rests just 1.1% above its 50-day moving average. Year-to-date, investors have pulled $304 million from XRT.

“XRT is currently in its most bearish two-month stretch of the year. According to data from Schaeffer’s Quantitative Analyst Chris Prybal, the fund has averaged a May loss of 0.7% since its inception, and a negative 2.2% return in June — historically, its worst month of the year,” according to Schaeffer’s.

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