Options Trading News

February 14, 2013  Thu 11:04 AM CT

A large trader apparently sees very little upside in the SPDR MidCap 400 Fund.
Nearly 11,000 MDY options have changed hands so far today, more than double its average daily volume in the last month. optionMONSTER systems show that one call print dominates the activity.

A trader sold 10,000 March 205 calls for the bid price of $1.55. The volume was almost 4 times higher than the strike's open interest at the beginning of the day, so this is clearly a new position.

The calls weren't tied to any trading in the underlying stock identified by our systems today, but they were likely sold against long shares as they are so close to the money. If that is the case, the trader sees little movement in fund over the next month. (See our Education section)

The MDY is up fractionally to $203.17 after hitting a new all-time high of $203.25 earlier in the session.  The exchange-traded fund has been trending higher from support at $172 in the last three months.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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