Learn the trade here. Make it on tradeMONSTER

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

Housing bulls bet on strong data

September 12, 2014

Key housing data will be released next week, and traders are snapping up calls now in the iShares U.S. Home Construction Fund.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

When to listen (and not talk)

Success is often built on listening. I just spent a few days on vacation with the family, with a number...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER