Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 9, 2013  Wed 4:14 AM CT

XLF: SEE CHART GET CHAIN FIND STRATEGIES
An enormous downside trade is targeting the SPDR Financial Fund, which remains just off the two-year highs reached last week.

optionMONSTER systems show that a single put spread accounted for nearly two-thirds of the 302,270 XLF options that traded in total yesterday. A block of 95,596 April 16 puts was bought for the ask price of $0.36, and two blocks of 47,798 April 14 puts were sold for $0.09 and $0.08. The open interest at each strike was fewer than 1,000 contracts, so this is clearly a new position.

The put vertical spread cost the trader $0.265, which is the amount at risk if the XLF remains above $16 through expiration in mid-April. The maximum gain of $1.735 would be realized if the stock is below $14 at that time. (See our Education section)

The XLF finished the session at $16.96, down fractionally on the day. The exchange-traded fund closed at $17.05 on Friday, just off the highs from February 2011. It was at support at $15 in mid-November and was last below $14 at the June lows.
Share this article with your friends


Related Stories

XLF

Notable option trades in equities

October 13, 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.

XLF

Midday index, ETF option volumes

October 13, 2014

Total option volume is again running very strong at 9.3 million so far today, with bearish action in the major indexes and ETFs, optionMONSTER data systems show.

XLF

Midday index, ETF option volumes

October 9, 2014

Total option volume is running a little above average at 5.8 million so far today, led by the primary indexes and ETFs, optionMONSTER data systems show.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER