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October 5, 2012  Fri 11:01 AM CT

XLY: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Consumer Discretionary Fund is on pace for a record-high close, and one large trader apparently believes that current levels will hold.

More than 33,000 XLY options have already changed hands so far today, compared to a daily average of 4,300 contracts in the last month. Almost all of the activity came in a single trade.

optionMONSTER's systems show that 31,000 October 47 puts were sold for $0.20. This volume was more was more than 10 times the open interest in the strike at the beginning of the day, clearly indicating a new position.

The XLY is up 0.74 percent to $47.82. This would be an all-time closing high, though the exchange-traded fund did see high intraday levels in mid-September up to $48.01. Shares were below $35 a year ago but broke though long-term resistance at $46 early last month.

The put sale is betting that the XLY will be above $47 when the options expire in two weeks. The trader is willing to take on the risk of having to buy the stock if it falls below that strike price. (See our Education section)
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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