Learn the trade here. Make it on tradeMONSTER

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

Puts surging in real-estate fund

July 31, 2014

A large put trade is hitting the iShares U.S. Real Estate Fund as it pulls back from a 52-week high reached last week.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

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