No sector has struggled more in recent months than Consumer Staples (XLP). Shifting consumer tastes/brand loyalty, pricing pressures at the retail level, higher interest rates offsetting the dividend yields have all contributed to the malaise.
Perhaps some signs of life yesterday and today, based on option activity in Coca Cola (KO).
Yesterday someone bought 15,000 of the June 44 calls right around $1.00 and today another 15,000 traded around $.80, making this strike the second largest in the name. As of this writing, KO is trading at $41.78 and the market on these options is $.84-.87 with a very modest implied volatility reading of about 14.25.
Someone out there is positioning for a rebound in this sector in the coming weeks.