Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 19, 2013  Thu 9:53 AM CT

IWM: SEE CHART GET CHAIN FIND STRATEGIES
An enormous put sale is looking for a floor in the iShares Russell 2000 Fund.

optionMONSTER systems detected the sale of 30,000 March 105 puts for the bid price of $1.79. Open interest was 16,676 contracts before the trade appeared, clearly showing that this is a new position.

The put seller is taking in a credit of $5.37 million, which would be kept as profit if the IWM stays above $105 through expiration in mid-March. But the trader also carries the risk of having to buy the stock if it falls below that strike price, which means that he or she would be on the hook to purchase $315 million worth of shares. (See our Education section)

The IWM is down 0.39 percent to $112.44 this morning. The exchange-traded fund posted an all-time closing high of $113.51 three weeks ago and was last below $105 in mid-October.
Share this article with your friends


Related Stories

IWM

Huge bearish play on Russell ETF

September 24, 2014

The iShares Russell 2000 ETF drew a large put trade yesterday morning that seemed to anticipate the action of the day.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER