Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 22, 2013  Fri 11:32 AM CT

XLP: SEE CHART GET CHAIN FIND STRATEGIES
Consumer staples are at an all-time high, and traders aren't nervous yet.

optionMONSTER's tracking systems detected heavy put selling in the SPDR Consumer Staples Fund, which focuses on companies such as Procter & Gamble, Phillip Morris International and Coca-Cola.

Some 29,800 contacts have traded in XLP, more than twice the daily average over the last month. The September 37 puts are the busiest, with 21,867 sold for $0.62. Previous open interest was just 37, so this was a new position.

The put selling is a bet that the XLP will hold up above $37 through that September expiration. The trader is also showing the willingness to buy shares if they are below that strike. See our Education Section for more on the strategy.

XLP rose 0.80 percent to $39.25 in early afternoon trading. It has been climbing for all of 2013 after ending last year below $35. Only twice during that time has it closed below its 10-day moving average since, both in the last week.
Share this article with your friends


Related Stories

XLP

Puts surge in consumer staples fund

September 22, 2014

A huge complex put spread is targeting the SPDR Consumer Staples Fund, which posted a 52-week closing high last week.

XLP

Bear pounces on consumer staples

September 18, 2014

One trader is betting that the SPDR Consumer Staples Fund will pull back from current levels near all-time highs.

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