Learn the trade here. Make it on tradeMONSTER

Options Trading News

August 22, 2013  Thu 4:14 AM CT

ITB: SEE CHART GET CHAIN FIND STRATEGIES
The iShares U.S. Home Construction Fund is facing a large bearish position.

optionMONSTER systems show that 10,000 each of the October 17 and 21 puts traded yesterday. The 21 puts were bought for $0.98 and the 17 puts were sold for $0.08. Both traded well above previous open interest at their respective strikes, clearly indicating new activity.

This vertical spread cost the trader $0.90, which is the maximum risk if ITB remains above $21. The maximum potential gain is $3.10 if the stock is below $17 at that time. (See our Education section)

The ITB was down fractionally at the end of the day to $21.24. The exchange-traded fund has been trending downward from above $26 in May and reached their lowest levels of 2013 last week.
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.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Options on Futures are Still Options

Education & Strategy

Before you quit that day job...

I try to avoid popular-culture references, but this week's "American Ninja Warrior" struck a chord. One contestant had laid it...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER