Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 5, 2012  Fri 2:45 AM CT

XRT: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR S&P Retail Fund is pushing back toward last month's highs, but yesterday's option activity was positioning for a possible fall.

More than 11,000 December 53 puts traded against open interest of just 122 contracts, clearly new positions. A trader bought blocks of 8,500 and then 1500 of the puts for $0.24, according to optionMONSTER's Depth Charge tracking system.

The XRT gained 1.57 percent yesterday to close at $63.55. The exchange-traded fund hit an all-time high of $65.47 last month, climbing from a low of $44 a year ago.

The put buying could be an outright bearish bet on the XRT or it could be hedging against a long position in the stock. The latter would ultimately be bullish, as it has a similar payoff to a long call position. (See our Education section)

Total option volume in the XRT was 39,393 contracts, compared to a daily average of 1,450.
Share this article with your friends


Related Stories

XRT

Will retailers have happy holidays?

October 24, 2014

The SPDR S&P Retail Fund has rebounded from the recent market selloff, and a combination trade is looking for a rally before Christmas.

XRT

Trade sees happy holidays for retail

October 17, 2014

The bulls are back on board today, and large call spread is looking for a continued rebound in the SPDR Retail Fund by Christmas.

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER