With a hat tip to www.Trade-Alert.com (my options trade flow monitoring service), I noticed a significantly large bearish trade being executed in the XRT etf for retail stocks. The sector has been a huge out performer for much of this year, and the trade that printed this afternoon is positioning for a bit of a give back on that success, albeit in October. In a 3 part options trade, someone sold almost 10,000 Sept 21st expiration 52 puts for $.60 while simultaneously purchasing 10,000 of an Oct 19th expiration 52-50 put spread for $.64. Essentially this trade reflects the likelihood of retail stocks holding up for the next 10 days (which includes this Friday’s retail sales report that is expected to be strong), but then undergoing a significant bout of weakness heading into October. It is possible that this investor is simply hedging a portfolio of retail stocks, but whatever the case, it is a very large trade for this etf, and certainly one worth mentioning.