OptionsHouse

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

How the bulls are playing housing

April 22, 2015

The iShares U.S. Home Construction Fund is up 8 percent since the start of January and has broken out to levels last seen during the sub-prime meltdown in 2007.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Short synthetic stock

With the use of the calls and puts we can not only create Long Synthetic Stock, but Short Synthetic Stock as well...

View more education articles »