Trader looks for floor in Nasdaq 100
Chris McKhann | [email protected]
optionMONSTER systems show that a trader sold 7,318 June 2875 puts for $11 and bought the same number of June 2865 puts for $10.10. The volumes were higher than the previous open interest in each strike, so this is new credit spread.
This spread takes in a credit of $0.90, which is the maximum profit if the NDX remains above 2875 through expiration in mid-June. The maximum potential loss is $9.10. (See our Education section)
The NDX lost 0.9 percent to close at 2999.13. The index traded as low as 2984.84 after hitting a 13-year intraday high above 3053. It was last below 2865 on the last day of April.
More than 52,000 NDX options changed hands, compared to a daily average of 14,535 over the last month.