Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 21, 2012  Fri 11:10 AM CT

DIA: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Dow Jones Industrial Average Fund doesn't usually see much option action, but today it is the target of a large call sale.

More than 52,000 DIA options have traded in total, compared to a daily average of around 35,000. optionMONSTER systems show that a trader sold 10,920 January 133 calls for the bid price of $1.52 against previous open interest of 7,550 contracts, so this is a new position.

The call selling isn't tied to any trading in the underlying shares that we can see today, but it is likley they they were traded against a previously established long position. That would create a covered call strategy, which would be bullish up to the $133 strike price but not beyond. (See our Education section)

The DIA is down 1.23 percent to $131.14 in early afternoon trading. The exchange-traded fund bounced off support at $125 a month ago and tested resistance around $134 earlier this week.
Share this article with your friends


Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER