OptionsHouse

Options Trading News

October 8, 2013  Tue 3:47 AM CT

RSX: SEE CHART GET CHAIN FIND STRATEGIES
A large trade is looking for a sharp move up or down in the Market Vector Russia ETF.

More than 23,000 RSX contracts traded yesterday, about 10 times its daily average for the last month. The puts and calls traded in roughly equal volume, and almost all of the action was in the May options.

optionMONSTER systems show that a trader bought 5,500 May 22 puts for $0.48 and the same number of May 34 calls for $0.39. There was no open interest at either strike, indicating that this is new positioning. The trade, known as a strangle, is looking for the RSX to move sharply higher or lower. (See our Education section)

Later in the day, 6,000 each of the May 28 puts and May 29 calls traded, with the puts going for $2.10 and the calls bought for an average of $1.825.

The RSX gave up 0.64 percent to close at $28.70, in the middle of its recent range. The exchange-traded fund was below $24 in late June and at a 52-week high above $31 in January.
Share this article with your friends


Invest Like a Monster - San Diego: June 26-27

Premium Services

Education & Strategy

Vega

There is another Greek which measures the effects on an option's price buy changing the amount of extrinsic value in the option, and that Greek is Vega...

View more education articles »