OptionsHouse

Options Trading News

May 13, 2013  Mon 2:45 AM CT

XRT: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR S&P Retail Fund climbed to a new all-time high on Friday but saw a large put trade just before the closing bell.

A trader bought 5,000 June 75 puts for $1.20 and sold 10,000 June 73 puts for their bid price of $0.76, according to optionMONSTER's Depth Charge system. This was clearly new positioning, as the open interest at each strike was below 2,000 contracts before the session began.

The trader spent $0.44 to open this vertical spread, which is the maximum potential loss. The maximum gain of $1.56 would be realized if the XRT is below $73 at expiration in mid-June. (See our Education section)

The XRT was up 1.43 percent on Friday to close at $76.45, a record closing and intraday high. The exchange-traded fund was below $73 just the previous Thursday.

Friday's total option volume in the XRT was 53,304, compared to a daily average of 17,000 in the last month.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »