Learn the trade here. Make it on tradeMONSTER

Options Trading News

August 27, 2013  Tue 3:16 AM CT

XLE: SEE CHART GET CHAIN FIND STRATEGIES
A large position is looking for more volatility in the SPDR Energy Fund.

optionMONSTER systems show that a trader bought 9,500 December 78 puts for the ask price of $2.07. The volume was almost 3 times higher than the previous open interest at that strike, so it is a new opening position.

Just after the puts changed hands, the largest block of XLE stock as more than 300,000 shares traded for $82.12. So it appears that the puts were traded against the stock in a long-volatility play. (See our Education section)

The XLE was down fractionally to close yesterday at $81.62 after bouncing off support at $80 last week. Shares of the exchange-traded fund have found resistance at $84 in the last several months, posting a high just above that level in late July.

More than 46,000 XLE options traded on the day, compared to a daily average of 14,123.
Share this article with your friends


Related Stories

XLE

What's behind puts in energy fund

September 15, 2014

A large put spread tops today's option activity in the SPDR Energy Fund as shares bounce off their lowest level since mid-May.

XLE

Energy fund faces downside trade

September 10, 2014

A huge put spread is positioning for further declines in the SPDR Energy Fund, which is trading at its lowest level since May.

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