OptionsHouse

Options Trading News

February 1, 2013  Fri 2:45 AM CT

ING: SEE CHART GET CHAIN FIND STRATEGIES
Dutch financial firm ING has been working its way higher for the last eight months, and one trader is betting that it will hold its current level through the middle of this year.

optionMONSTER systems show that a trader sold 5,000 July 10 puts yesterday for the bid price of $0.80. This is clearly a new position, as the volume was more than 30 times higher than the strike's open interest of just 158 before the day's trading began.

The put selling is a bet that ING will hold above $10 through expiration in mid-July. The trader is also showing a willingness to buy shares if they are below that strike price. (See our Education section)

ING closed yesterday up fractionally at $10.08. The Netherlands-based company hit a high of $10.47 two weeks ago as it trended higher from $5.51 in early June.

More than 5,200 ING options changed hands in total yesterday, versus the daily average of 400 in the last month.
Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »