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 inch lower on mixed news

July 31, 2015

S&P 500 futures are off 0.1 percent, mostly tracking the moves in Europe. Asia was mostly higher, led by again of 1.5 percent in Mumbai, though Shanghai dropped 1.1 percent.

SPX

Chicago PMI, energy earnings due

July 31, 2015

Chicago PMI is expected to show a reading of 50.5 for July, up from 49.4 in the previous month. Exxon Mobil and Chevron announce results before the opening bell.

SPX

Stocks slide on weak GDP report

July 30, 2015

S&P 500 futures are down about 0.3 percent, while European indexes are higher by about 0.5 percent. Asia was mixed overnight, Tokyo up 1 percent but Shanghai down 2 percent.

SPX

Preliminary GDP leads calendar

July 30, 2015

Economists are looking for growth of 2.5 percent in the second quarter, compared with a 0.2 percent drop between January and March.

SPX

Futures keep rising before Fed

July 29, 2015

S&P 500 futures are up 0.2 percent while European markets are fractionally higher. Shanghai was the biggest mover in Asia overnight, climbing 3 percent.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »