Learn the trade here. Make it on tradeMONSTER

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


Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER