OptionsHouse

Options Trading News

December 19, 2013  Thu 9:34 AM CT

ITB: SEE CHART GET CHAIN FIND STRATEGIES
A put spread is looking for the iShares U.S. Home Construction Fund to give up yesterday's gains.

optionMONSTER systems show that a trader bought 5,000 January 22.50 puts for the ask price of $0.50 and, seconds later, sold 5,000 January 22 puts for their bid price of $0.25. Volume was well above previous open interest in each strike, so this is a new activity.

The vertical spread cost just $0.25, which is all that is at risk in the trade. If the ITB is below $22 at that expiration, the position stands to make $1.25. (See our Education section)

The ITB is off 0.64 percent to  $23.25 this morning. The exchange-traded fund was as low as $22.25 on Tuesday.

Nearly 10,800 ITB options have traded in all so far today, more than twice its full-session average for the last month. 
Share this article with your friends


Related Stories

ITB

Bulls are constructive on home fund

March 4, 2015

The iShares U.S. Home Construction Fund has pulled back from recent highs, but call buyers are looking for a rally in the next six months.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »