OptionsHouse

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

Land grab for bulls in real estate

August 28, 2015

The iShares U.S. Real Estate Fund got slammed lower along with everything else recently, but the bulls came back in force yesterday.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »