Options Bears Are Betting Against Industrial Stocks

The Industrial Select Sector SPDR Fund (XLI) exchange-traded fund (ETF) is up 0.9% to trade at $175.58 today. Thanks to top holding Caterpillar (CAT) propping up the Dow with a 63% year-to-date gain, XLI has added 13% in 2026, outpacing the S&P 500 Index's (SPX) 10% year-to-date gain. Despite pulling back from its March 2 record high of $179.30, options traders are focused on puts.

XLI's 10-day put/call volume ratio of 16.45 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 93% of annual readings. Echoing this, the ETF's Schaeffer's put/call open interest ratio (SOIR) of 5.89 ranks in the 87th percentile of readings from the last year.

Looking at individual contracts, the July 165 put is the top trade, while the longer-term March 2027 150-strike puts are also popular.

From a technical standpoint, XLI remains supported at its 100-day moving average, and remains above an uptrend from April lows near $155.