Absolutely enormous upside call option buying in the the financial sector etf, XLF. despite today’s market route. Back in September, financial names enjoyed a significant pop higher with the XLF going from below 28 up to 29 in matter of two days, only to see it get whacked back down to 27.5 over the period of 6 consecutive days a the end of September. Now with interest rates heading higher, and more importantly, the yield curve steepening, people are taking a renewed interest in the financial sector. Just to point out one strike price in particular, the November expiration 29 calls have traded over 60,000 contracts today on either side of $.30 with the XLF around $28.Implied volatility has picked up from slightly below 17 up to almost 18% as a result of today’s activity. There are numerous other strikes seeing huge volume as well. All of this ahead of bank earnings due out over the course of the next two weeks. I joined that trade and purchased a position outright at $.31 in the aforementioned Nov $29 strike.