jumped to a six-week high on Thursday on falling domestic inventories and a storm heading toward the Gulf Coast. But as the rally began on Wednesday, one options trader made a large bet that it wasn't ending anytime soon.Energy Select SPDR Fund
"This is a good trade to take a look at," Mike Khouw, co-founder and chief strategist at Optimize Advisors, said Wednesday on CNBC's"One of the things you'll notice is that the [$]55 puts that they sold [were] very close to those December '18 lows, and the [$]75 strike calls that they sold [were] also not far off of the [$]77-and-change highs that we saw in the XLE over the course of the past year," he said.
But although the XLE's nearly 12% year-to-date gain might seem encouraging for the mystery trader, the bigger picture is troubling, said Steve Grasso, director of institutional sales at Stuart Frankel & Co. He pointed out that the XLE has lost 14% in the last 12 months and 6% in the last five years.
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