Options Trading News

November 6, 2012  Tue 3:16 AM CT

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

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »