OptionsHouse

Options Trading News

February 5, 2013  Tue 11:09 AM CT

IYR: SEE CHART GET CHAIN FIND STRATEGIES
A large put spread dominates today's option activity in the iShares U.S. Real Estate Fund as it trades just off its highs.

optionMONSTER systems show that a trader bought 4,000 September 64 puts for $2.20 and sold 4,000 September 54 puts for $0.56. Open interest was 16 and 0 respectively, so this is a new vertical spread. (See our Education section)

This position cost the trader $1.64, which is the maximum potential loss if shares are above $64 at expiration in mid-September. The maximum gain of $8.36 would be realized if the exchange-traded fund is below $54 at that time.

The IYR is flat on the session at $67.58 in early afternoon trading. The stock was down at support at $61 in mid-November and climbed to $68.31 last week, its highest price since June 2008.
Share this article with your friends


Related Stories

IYR

Notable option activity in equities

July 15, 2015

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »