Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 18, 2013  Fri 4:47 AM CT

XSP: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is counting on a floor in the Mini S&P 500 Index.

More than 16,000 XSP options changed hands yesterday, compared to a daily average of 2,335 in the last month. Most of the volume was in a last-minute trade just before the close.

optionMONSTER systems show that a trader bought 5,887 October 159 puts for $0.02 against previous open interest of 6,021. At the same time, he or she sold 5,647 December 165 puts for $1.38 in volume far above open interest of just 89 contracts at that strike, indicating new activity.

This is almost certainly the roll of a short-put position, buying back the October puts to take the risk off the table and opening a new trade in December. The bet then becomes that the XSP will remain above that 165 level. (See our Education section)

Like the S&P 500 Index options, these are cash-settled, as there is no single underlying asset. The XSP, which is just one-tenth the size of the SPX, finished the day up 0.68 percent to record-high close of 173.32.
Share this article with your friends


Related Stories

XSP

Big put trade targets Mini S&P 500

August 29, 2014

A trader is rolling a large put position forward and to a higher strike in Mini S&P 500 Index, which is simply one-tenth the size of the SPX.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER