Options Trading News

February 13, 2013  Wed 11:08 AM CT

A large call strategy tops today's option activity in the iShares U.S. Real Estate Fund.

optionMONSTER systems show that a trader sold 5,300 September 70 calls for $1.44 against open interest of more than 16,500. At the same time, he or she bought 5,300 January 70 calls for $1.97 in volume that was above the previous open interest of 1,280 at that strike, so that is a new position.

This could be a roll, with the trader closing the position in September and moving it out to January to buy more time. It could also be new calendar spread looking for the IYR to remain in a range around $70 for the coming months. (See our Education section)

The IYR is up fractionally now, trading at $68.45. The exchange-traded fund reached $68.64 this morning, its highest since June 2008.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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