Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 2, 2012  Tue 11:01 AM CT

IYR: SEE CHART GET CHAIN FIND STRATEGIES
A put spread tops the action in the iShares U.S. Real Estate Fund as it pulls back from a four-year high.

The IYR is up 0.52 percent $64.25 after trading above $68 on Sept. 14, its highest level since the same month in 2008. Shares were below $447 at a 52-week low a year ago.

A trader sold 3,420 January 54 puts for $0.30 against open interest of 6,286, so it could have been an opening or closing transaction. At the same time, the trader bought 3,420 June 60 puts for the ask price of $3.20 against open interest of 31 contracts, so that was a new opening position.

The overall strategy could be a roll, with the trader selling the nearer-term puts to close out the position and buying the longer-term contracts at a lower strike price. It could also be a new diagonal put spread, which would also be bearish outlook but would limit the potential downside exposure, at least until that first expiration. (See our Education section)
Share this article with your friends


Related Stories

IYR

Volatility play in real-estate fund

July 7, 2014

A large combination trade is betting that the iShares U.S. Real Estate Fund will remain range-bound and/or if its volatility is below that implied by the price of its options.

IYR

Real-estate ETF faces bearish play

July 1, 2014

A big put buyer is preparing for a potential pullback in the iShares U.S. Real Estate Fund, which has been trading in a tight range since hitting at 52-week high at the start of June.

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER