One large investor is cautiously optimistic about the recovery trade.  A large block of put options were purchased this morning while an underlying long position in the XLF was built.  This investors is likely betting on a substantial rise in shares while also hedging the downside a bit.  From the IB options desk:

XLF – Financial Select Sector SPDR – Shares of the financial exchange-traded fund slipped nearly 1% lower during the session to $14.70. One investor appears to have purchased 40,000 married put options on the fund today by simultaneously taking a long position in both shares of the underlying fund and put contracts. The June 2010 12 strike had 40,000 puts purchased for an average premium of 75 cents apiece. The put options yield downside protection in case shares of the XLF decline beneath the breakeven point at $11.25 by expiration in June of 2010. However, the investor responsible for the transaction is likely long-term bullish on the financial sector, and hopes shares will gain far more than the cost of the added insurance premium over the next seven months.