OptionsHouse

Options Trading News

December 11, 2012  Tue 10:04 AM CT

NLY: SEE CHART GET CHAIN FIND STRATEGIES
A put spread tops the option trading in Annaly Capital Management as shares of the real-estate investment trust slip today.

A trader bought 4,000 July 13 puts for $0.75 and sold the same number of the July 11 puts for $0.26, according to optionMONSTER systems. The volume at each strike was more than open interest, so this is a new vertical spread. (See our Education section)

The position cost $0.49, which is the most that can be lost if NLY holds above $13 through expiration. The maximum gain of $1.51 would come with the stock below $11.

NLY is down 0.75 percent to trade at $14.57. Shares have been in a relatively tight range in recent months. Before that the stock had fallen from a 52-week high of $17.75 in mid-September to its 52-week low of $13.72 in mid-November.
Share this article with your friends


Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »