Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 20, 2013  Mon 12:18 PM CT

XLK: SEE CHART GET CHAIN FIND STRATEGIES
Tech stocks have broken out to a historic level, and the bulls are hoping for a big run.

optionMONSTER's Heat Seeker monitoring program detected the sale of 15,000 June 32 calls on the SPDR Technology Fund for $0.62 and the purchase of 25,000 June 33 calls for $0.19. Volume was below open interest in the 32s, indicating that they closed an existing position and rolled it to the higher strike.

The trader collected a credit of $455,000 and still has the potential to make money if the fund keeps climbing through expiration on June 21. He or she also could see more upside leverage because of the increased number of contracts. (See our Education section)

The XLK is up fractionally at $32.22 today but has been lagging the broader market for the last year. The exchange-traded fund recently climbed above its September peak around $31.65 and is now at its highest levels in more than a decade. Now that it's broken long-term resistance, some traders might expect it to continue rallying.

The fund's biggest holdings include Apple, IBM, and Microsoft. Total option volume in the XLK is more than twice the daily average so far, with calls outnumbering puts by more than 50 to 1.
Share this article with your friends


Related Stories

XLK

Tech fund attracts big upside bet

April 17, 2014

Traders are snapping up calls in the SPDR Technology Fund, which includes big names such as Apple, Microsoft, and Google.

XLK

Largest option trades in equities

April 11, 2014

Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.

XLK

Largest option trades in equities

April 3, 2014

Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.

XLK

Huge upside trade in tech sector

April 3, 2014

The SPDR Technology exchange-traded fund yesterday reached its highest price since February 2001, when the sector was in the midst of collapsing from the late-1990s tech bubble.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER