The XLF after being up over 20% after purchasing is down, way down today... It is down well over 20% and into oversold territory and dropped below its 200-day moving average as the dollar strengthened and banks were having issues and downgrades. This condition sometimes creates an environment for a rebound and with as cheap as the $16 Nov Calls are would make for a good trade going forward, all depending on Thursday's GDP numbers. Especially if it can make it back over its 200MVA...
Currently sitting at .10 and over 350,000 open interest looks like the trend is for XLF to go higher by the Nov expiration. With XLF over 15.20 these should be easily over .20 or 100% return....
More Happy Trading...
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