OptionsHouse

Options Trading News

January 17, 2013  Thu 9:49 AM CT

IYR: SEE CHART GET CHAIN FIND STRATEGIES
A large trade is looking for the iShares Real Estate Fund to stay above current levels in the next month.

A trader bought 6,000 January 67 puts for the ask price of $0.13 against open interest of 8,730. At the same time, he or she sold 6,000 February 67 puts for the bid price of $0.68 in volume that was well above that strike's open interst of 1,288, so that was a new position, according to optionMONSTER systems.

The trader is rolling a short-put position forward as the January contracts expire tomorrow. The new February short puts, which are at the money, are looking for the stock to remain above the $67 strike price in a month. (See our Education section)

The IYR is up 0.32 percent to $67.04 this morning, continuing its steady climb from support at $61 in mid-November. The exchange-traded fund is now closing in on its September high.
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 »