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February 13, 2013  Wed 11:08 AM CT

IYR: SEE CHART GET CHAIN FIND STRATEGIES
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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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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