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September 26, 2013  Thu 2:45 AM CT

SWY: SEE CHART GET CHAIN FIND STRATEGIES
One trader is looking for lower volatility in Safeway with shares near five-year highs  

optionMONSTER systems detected the sale of 5,000 January 32 puts for the bid price of $1.35. This is clearly a new position, as open interest in the strike was just 704 contracts before the trade appeared.

Less than two minutes later, 160,000 SWY shares traded for $32.0625. Combined with the short puts, this creates an overall delta-neutral position that is designed to profit from volatility that comes in lower than what is implied by the options. (See our Education section)

SWY was down 0.5 percent to $31.92 yesterday, one session after seeing its highest close since June 2008. Shares of the supermarket chain have doubled in the last year.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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