Traders Hedging on the XHB

Published on Sunday, 16 May 2010 23:32 Written by Danny Miller

New York, May 16^th (TradersHuddle.com) – Shares of the SPDR SERIES TRUST HOMEBUILDERS ETF (NYSE: XHB) closed the Friday session right at $17.96, after staging an intraday recovery bounce right off its 50-day moving average, basically holding the bullish bias.

The bulls have been in control of the XHB price action in the past couple of months, clearly outperforming the S&P 500. This is why the Put activity seen on last Friday session, is considered to be traders seeking protection as the June $17 put  was purchased over 15,000 times; open interest on the strike is 17,089 contracts.

The SPDR SERIES TRUST HOMEBUILDERS ETF seeks to replicate, net of expenses, the S&P Homebuilders Select Industry Index. The fund will invest at least 80% of assets in securities that comprise the index.