Market News

January 11, 2017  Wed 7:47 AM CT

Traders apparently believe that the SPDR Health Care Fund is on solid ground at least through the end of next week.

Our monitoring systems detected the sale of some 4,600 January 71.50 puts for $0.37 to $0.62 yesterday. This represents new positioning, as open interest in the strike was just 78 contracts before the session began.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

XLV rose 0.55 percent to $71.25 yesterday and is up 5 percent in the last month.

News Archives
OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market VIEW FULL REPORT

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »