OptionsHouse

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

Key options activity in the energy patch

January 26, 2016

Energy stocks have struggled since the year began. Here's a rundown of activity in the sector during that time.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »