XRT – SPDR S&P Retail ETF – A large-volume bearish ratio put spread enacted on the XRT, an exchange-traded fund designed to replicate the performance of the S&P Retail Select Industry Index, suggests one pessimistic options strategist is bracing for near-term erosion in the price of the underlying fund through July expiration. Shares of the ETF are down 2.5% to stand at $37.13 as of 10:50 am (ET). The retail-bear purchased 20,000 puts at the July $37 strike for an average premium of $0.93 per contract, and sold 40,000 puts at the lower July $34 strike for an average premium of $0.295 apiece. Average net premium paid for the spread amounts to $0.635 per contract. The investor responsible for the transaction is poised to profit if shares of the XRT decline another 2.05% from the current price to breach the average breakeven point on the spread at $36.365 by expiration day next month. Maximum potential profits of $2.365 per contract are available to the ratio-spreader should shares of the retail fund fall 8.4% to settle at $34.00 by July expiration. The greater proportion of short puts at the lower strike price indicate the trader, while certainly near-term bearish on the fund, is not expecting the XRT’s shares to collapse in the next several weeks to expiration day.