OptionsHouse

Options Trading News

October 3, 2013  Thu 9:12 AM CT

XLB: SEE CHART GET CHAIN FIND STRATEGIES
Despite today's market selloff and rise in volatility, put selling still seems to be the popular trade, as we see this morning in the SPDR Materials Fund.

More than 12,000 XLB October 41 puts have traded, already above its full-session daily average and topping the previous open interest at that strike. Those puts were sold, with the big block of 9,500 going for the bid price of $0.24, according to optionMONSTER systems.

The put seller sees the XLB holding above $41 through mid-October, though the trader may look to close the position before the debt ceiling is hit the day before that expiration. (See our Education section)

The XLB is down 0.73 percent to $41.99 this morning, continuing to stay in its range of the last week. The exchange-traded fund was at a high of $43.78 two weeks ago and last closed below $41 a month ago.
Share this article with your friends


Related Stories

XLB

Another bearish play hits materials fund

September 26, 2016

Traders were rolling downside October positions in the SPDR Materials Fund on Friday for the second time in less than a week.

XLB

Materials fund faces downside strategy

September 21, 2016

The SPDR Materials Fund has fallen 4 percent in the last month, and one trader is extending a bearish position through mid-November.

XLB

Will downtrend continue for materials?

September 9, 2016

The SPDR Materials Fund is breaking below its recent range today, and traders are betting that it may fall further in coming weeks.

OptionsHouse

Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »