The XLB materials exchange traded fund has risen 50 percent since its March lows, and options traders are betting that it still has some fuel left in the tank .
More than 71,000 calls changed hands at the June 28 strike on Wednesday last week, including a single chunk of 49,900 bought for $0.90, according to OptionMonster’s tracking systems. The average daily volume at that strike is just 38 calls, and open interest was 1,072 contracts…….
……..Yesterday’s call activity suggests that traders believe that the XLB will climb at least to $28 by the time contracts expire in mid-June. The ETF, which combines agriculture, chemical, and metals names, has ramped higher along with the rise in commodities.
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