Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 25, 2013  Fri 2:45 AM CT

XRT: SEE CHART GET CHAIN FIND STRATEGIES
A huge put spread dominated yesterday's option activity in the SPDR Retail Fund as it hit a new all-time high.

More than 266,000 XRT options changed hands in the session, compared to a daily average of fewer than 18,000. Only 16,000 of those contracts were calls.

optionMONSTER's Depth Charge system shows that a trader bought 99,999 March 64 puts for the ask price of $0.72 and sold the same number of the March 60 puts for the bid price of $0.22. The volume was more than twice the previous open interest at each strike, clearly indicating new activity.

This vertical spread cost $0.50 to open, which is the amount at risk if the XRT remains above $64 through the March expiration. The maximum gain of $3.50 would be realized if the exchange-traded fund is below the lower $60 strike price at that time. (See our Education section)

The XRT finished the day up 0.85 percent at $66.19 after peaking at $66.94 earlier in the session. These are new lifetime highs for the fund, which tested support at $60 at the end of 2012.
Share this article with your friends


Related Stories

XRT

Notable option trades in equities

September 3, 2014

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER