$XLF bulls score on monster volume

Bullish traders collected large profits on huge option volume today as the SPDR S&P Financial Fund rallied sharply.

On Oct. 20, Investitute’s tracking systems detected the purchase of 88,000 December $28 calls in one print for $0.11 as part of a bullish roll with shares at $26.58. This was clearly a new position, as volume was far above the strike’s open interest of 11,892 contracts.

Those calls traded up to $0.28 today, more than 2.5 times their original purchase price. The stock rose 4.1 percent in the same time period, illustrating the kind of leverage that can be achieved through options.

Investitute co-founder Pete Najarian cited the purchase of even more XLF bullish options, this time an astounding 100,000 Weekly $28 calls expiring on Dec. 29, on CNBC’s “Halftime Report” this afternoon.

XLF was up 0.22 percent today to close at $27.58. The exchange-traded fund rallied this week along several banks as investors rotated out of technology and into the financial sector.