OptionsHouse

Options Trading News

November 1, 2012  Thu 1:16 AM CT

XOP: SEE CHART GET CHAIN FIND STRATEGIES
A huge put trade topped yesterday's option action in the SPDR Oil & Gas Exploration and Production Fund.

A trader sold 40,625 December 50 puts for $1.35 against open interest of more than 71,000 contracts, according to optionMONSTER's systems. He or she also bought 60,888 December 45 puts for the ask price of $0.51 against open interest of just 1,065, indication a new position at this strike.
 
This could be a roll, with the trader selling the higher-strike puts to close that position and buying more at the lower strike. It could also be a new ratio spread that is looking for the XOP to be above $50 or well below $45.

The XOP finished the day at $53.77, down fractionally on the day. The exchange-traded fund was above $57 two weeks ago and near $60 in mid-September, trending higher from support at $45 in the last four months.

More than 121,000 XOP options traded in all, 10 times the daily average over the last month.
Share this article with your friends


Related Stories

XOP

Bearish put trade in oil and gas fund

August 24, 2015

A large trade is preparting for further downside in the SPDR S&P Oil & Gas Exploration & Production Fund, rolling puts to a lower strike.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »