tradeMONSTER: Trade free for 90 days

Options Trading News

April 16, 2013  Tue 10:58 AM CT

XOP: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Oil & Gas Exploration & Production Fund is bouncing a day after posting its lowest close in more than three months, but one trader is positioning for another leg lower.

optionMONSTER systems show that more than 4,000 each of the April 56 and May 54 puts traded in unison. The big prints of 3,182 moved together, with the 56 puts sold for the bid price of $0.98 in volume below previous open interest of 14,870. The 54 puts were bought for the ask price of $1.28 against open interest of just 216 contracts, clearly indicating a new position.

Given the data and the market action, this appears to be a trader rolling a long-put position one month later and to a lower strike that is out of the money. This also could very well be part of a hedging strategy. (See our Education section)

The XOP is up 1.5 percent to $56 even in midday trading after posting its lowest close since Jan. 9 yesterday. The exchange-traded fund was above $62 at the highs of a month ago.
Share this article with your friends


Related Stories

XOP

Traders bet on drillers to rebound

December 11, 2014

The SPDR Oil & Gas Exploration & Production Fund has been trending lower for the last six months and hit a 52-week low yesterday.

XOP

Notable option trades in equities

December 9, 2014

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

tradeMONSTER: Trade free for 90 days

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER