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December 11, 2012  Tue 11:40 AM CT

GNW: SEE CHART GET CHAIN FIND STRATEGIES
As Genworth Financial continues to climb, one trader is positioning for greater volatility.

More than 28,000 GNW options have traded so far today, about 5 times its daily average in the last month. The biggest trade came in the January 2015 5 puts.

optionMONSTER systems show that a trader bought 10,000 of those puts for $1.12. The open interest was just 600 at the start of the session, so this is a new position.

About 30 seconds later, the trader bought 200,000 shares of GNW for $6.94. The delta of the options is -0.2, and the total delta of the position is -200,000. The purchase of the stock makes the overall position delta-neutral, meaning that the trade is focused on volatility as opposed to a specific direction.

GNW is up 2.98 percent to $6.92 in afternoon trading, pulling back from a high of $7.13 this morning. These are the highest levels for the investment and insurance firm since shares gapped down in mid-April. It was  down at $4.06 at the start of August.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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