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


Premium Services

Education & Strategy

Repairing losers with ratio spreads

Last week we mentioned the "stock repair strategy." This week is a good time to follow up, given the action...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER