Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 6, 2012  Tue 3:16 AM CT

XLP: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Consumer Staples Fund saw downside option activity as it fell again yesterday.

A trader bought 6,300 March 32 puts for the ask price of $0.39, according to optionMONSTER's Depth Chrage tracking system. Open interest was just 245 contracts at the start of the session, so this is a new opening position.

The XLP was down 0.17 percent yesterday to close at $35.14. The exchange-traded fund reached a high of 52-week high of $36.59 a month ago but has been slipping since. Shares had been in a steady uptrend since last November from a 52-week low just above $30.

The put buying could be an outright bearish position, though shares haven't finished below the $32 strike price since mid-December. The options could also be hedging against long shares looking to protect recent gains. (See our Education section)
Share this article with your friends


Related Stories

XLP

What's behind puts in staples fund

July 10, 2014

Traders are buying protection across the board this morning, and that is what they are apparently doing in the SPDR Consumer Staples Fund.

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER