Learn the trade here. Make it on tradeMONSTER

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 higher before ISM report

September 2, 2014

S&P 500 futures are up 0.1 percent. Indexes are also higher across the Atlantic but have halved their gains in the last-hour. Shanghai and Tokyo climbed more than 1 percent overnight in Asia.

SPX

Manufacturing data starts week

September 2, 2014

Traders returning from the long holiday weekend will face several important headlines this week, including the ISM manufacturing index.

SPX

When rolling makes good sense

September 1, 2014

Unlike most other things that expire, option positions can be rolled to different time frames or strikes to adjust a trade. Here's why that is often worth considering.

SPX

Stocks drift higher into long weekend

August 29, 2014

S&P 500 futures are up about 0.25 percent and back near their highs from earlier in the week. European markets are fractionally higher, and Asia was mostly positive overnight.

SPX

Chicago PMI on tap before holiday

August 29, 2014

Today's agenda brings a handful of reports, but trading will probably be light ahead of the Labor Day weekend. Data on personal income and consumer sentiment will accompany the Chicago reading.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

How to get the hedge you want

Hedging is a good idea. As I have said countless times, you insure your house and your car, but most...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER