Does another round of volatility await bank stocks? Reuters reports that a December $11-$13 put spread, a "sizeable bearish option trade" in the Financial Select Sector SPDR, could mean share withdrawal by the end of 2012.

On Monday, XLF, one of the most popular U.S, cash-market products, turned over 2.1 times the average daily volume. Trade Alert data also indicated that the Monday trade included 187,000 puts and 43,000 calls traded.

Investors awaiting central banks' announcements of actions to stimulate economic growth triggered the bearish put spread. The Federal Open Market Committee (FOMC) meeting will commence on Wednesday.

Frederic Ruffy, options strategist at Whatstrading.com, told the wire that "the FOMC rate announcement might shake things up Wednesday afternoon." 

Edited by: HFD


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