Options Trading News

December 12, 2012  Wed 10:24 AM CT

Total option volume is light at just 4.1 million contracts so far today, with bullish sentiment in some of the biggest indexes and ETFs, according to optionMONSTER's data systems.

The SPDR S&P 500 Fund (SPY) takes its usual No. 1 spot on the volume list with 486,000 contracts. The surprising thing is that 275,000 of those are calls, as puts usually outpace calls by a large margin.

The S&P 500 Index (SPX) options have traded 168,000 times, led by 112,000 puts. Just behind are the CBOE Volatility Index (VIX) options with 148,000, and here too we see bullish equity sentiment as 125,000 of those contracts are puts. (The VIX and the SPX typically move inversely.)

The iShares Emerging Markets Fund (EEM) has 114,000 contracts changing hands, with 72,000 calls. The iShares Russell 2000 Fund (IWM) has seen 112,000 options trade, dominated by 97,000 puts.

The PowerShares QQQ Trust (QQQ) options have turned over 87,000 times, with puts outpacing calls by more than 2 to 1. The SPDR Gold Shares Fund (GLD) also has 87,000 contracts traded, with 48,000 calls.
Share this article with your friends

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

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »