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 yesterday, 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.
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The XLB , known formally as the Materials Select SPDR, closed the session up 0.45 percent to $27. It reached its 52-week low of $17.83 on March 6.
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.
Najarian owns a call spread in XLB.