Bear targets home construction ETF
Chris McKhann | firstname.lastname@example.org
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.