Trader rolls calls in agriculture fund
Chris McKhann | email@example.com
The DBA is up 0.55 percent to trade at $27.42 after posting a 52-week low of $27.25 yesterday. It has been trending lower from above $34 at the start of September.
More than 7,500 DBA options have traded so far today compared with a daily average of 2,500, and fewer than 500 of them were puts. optionMONSTER's systems show that a trader sold 3,500 April 27 calls for $0.40 against open interest of 4,094 and bought the same number of the May 27 calls for $0.70 against open interest of 18.
The trader appears to be rolling long calls out to May, with the April contracts expiring at the end of this week. The calls are just in the money, so the roll means that the trader is willing to pay $0.30 to maintain calls in the DBA.