Market News

October 13, 2016  Thu 6:45 AM CT

A large trade is positioning for a possible decline in the SPDR S&P Oil & Gas Exploration & Production Fund.

optionMONSTER's tracking program detected the sale of November 36 puts for $0.88 and the purchase of 15,000 November 35 puts for $0.63 yesterday. Volume is below open interest in the higher contracts, indicating that a bearish position was rolled to a lower strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

XOP fell 1.04 percent to $38.23 yesterday but is up 10 percent in the last three months. Overall option volume was about average in the fund yesterday.

News Archives

Education & Strategy

Call rolls made easy with OptionsHouse

Rolling money from one contract to another is one of the most common actions taken by option traders.

More education articles »