Options Trading News

August 22, 2013  Thu 2:14 AM CT

A trader apparently believes that current levels will hold in the iShares Turkey Fund.

One print of 5,000 September 51 puts was sold for $0.65 in a new position, as there was no open interest in the strike before the trade appeared, according to optionMONSTER systems. The put sale made up almost all the day's volume in the name, which has averages just 7 contracts per session for the last month.

The trade is betting that TUR will hold above $51 in the next month. But the put seller is also risking the possibility of having to buy shares if they are below that level. (See our Education section)

TUR fell 5.46 percent to $52.25 yesterday, a 52-week closing low. The exchange-traded fund was at a high of $77.40 in late May.
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The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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