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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.
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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.

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