OptionsHouse

Options Trading News

March 15, 2013  Fri 9:20 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
A huge call spread is looking for the SPDR S&P 500 Fund to break to new highs in coming weeks.

It is rare to find unusual option trades in the SPY, as the open interest is typically so large that it makes such identification difficult. But this morning a huge call spread stands out in the first April Weekly expiration.

optionMONSTER's Heat Seeker system shows that a trader bought 40,000 of the 158 calls for the ask price of $0.47 and, at the same time, sold the same number of the 159 calls for the bid price of $0.24. The volume was more than the previous open interest at each strike.

This vertical spread is looking for the SPY to be above $159 in the next three weeks. The trader spent $0.23 for the possibility to make $0.77--a $3.08 million payout. This could also be an example of using a call spread to replace stock exposure, as cited in this week's Options Academy newsletter. (See our Education section)

The SPY is down 0.4 percent to $155.40 this morning, coming off yesterday's high of $156.80. The exchange-traded fund is within its range of the last three days.  
Share this article with your friends


Related Stories

SPX

Stocks in holding pattern near highs

February 27, 2015

S&P 500 futures are down 0.15 percent but are less than a percentage point below Wednesday's peak. Most overseas markets were little-changed, aside from India, which rallied almost 2 percent.

SPX

GDP, Chicago PMI lead calendar

February 27, 2015

The Commerce Department will announce revised gross domestic product for the fourth quarter at 8:30 a.m. ET, followed by the Chicago Purchasing Managers index follows at 9:45 a.m. ET.

SPX

Futures inch higher after key data

February 26, 2015

S&P 500 futures are up about 0.1 percent ahead of key economic reports, while European markets gained about 0.3 percent on the heels of confidence numbers. Asia was strong overnight.

SPX

Durable goods lead today's docket

February 26, 2015

The Commerce Department will announce the numbers for January at 8:30 a.m. ET. Economists expect an increase of 1.7 percent overall and 0.5 percent excluding transportation equipment.

SPX

Stocks holding in range near highs

February 25, 2015

S&P 500 futures are off 0.1 percent, and most of Europe is down slightly more. Oil and currencies associated with global growth are trying to rebound on strong Chinese manufacturing numbers.

OptionsHouse

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »