OptionsHouse

Options Trading News

February 21, 2014  Fri 11:32 AM CT

XHB: SEE CHART GET CHAIN FIND STRATEGIES
A bullish trade is targeting the SPDR Homebuilders Fund.

optionMONSTER's Heat Seeker system shows that more than 13,500 June 36 calls have traded today, with the biggest blocks bought for $0.42 and $0.43. This is clearly new activity as open interest in the strike was 2,508 contracts before the session began.

Corresponding blocks of the June 28 puts were sold for $0.27 and $0.26 with a total volume of 6,473. Previous open interest in that strike was 15,888.

The trader could either be buying calls and selling puts in a bullish combination spread or shifting from short calls to short puts. Either way, the strategy is bullish. (See our Education section)

The XHB is up 1.14 percent to $32.96 in early afternoon trading. The exchange-traded fund was at a 52-week high of $33.38 at the end of 2013 and rebounded off support at $30.50 at the start of this month.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »