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

Materials ETF faces bearish position

January 20, 2015

The SPDR Materials Fund has pulled back from all-time highs reached in November, and a large trade is positioning for another possible drop.

OptionsHouse

Premium Services

Free Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »