Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 28, 2013  Mon 9:47 AM CT

XLF: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Financial Fund is facing a large downside position even as shares trade at multi-year highs.

optionMONSTER systems show that a trader bought 18,500 September 16 puts for the ask price of $0.58 this morning. The volume was more than 10 times the previous open interest, so this is a new position.

The XLF is down 0.4 percent to $17.40, bouncing off the low of the session. The exchange-traded fund hit $17.50 earlier in the session, its highest level since October 2008. Shares were below $16 at the beginning of December.

The put buying isn't tied to any trading in the underlying identified by our systems so far, though it could be a hedge on a previously established long stock position. Alternatively, it could be an outright bet looking for a pullback from these highs. (See our Education section)
Share this article with your friends


Related Stories

XLF

Enormous hedge in financial fund

July 31, 2014

A gigantic put trade hit the SPDR Financial Fund just before yesterday's Federal Reserve's announcement, likely done as a cheap hedge.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER