Options Trading News

September 20, 2016  Tue 11:31 AM CT


Traders are looking for gains in the SPDR Financial Fund by the end of the year.

optionMONSTER's market scanner shows that 2,200 December 20 calls were purchased for $0.35 today. This represents fresh buying, as open interest in the strike was only 118 contracts before the trades appeared.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

XLF is up 0.21 percent to $19.35 in afternoon trading and has risen 5 percent in the last three months. Total calls in the fund outnumber puts by a bullish 6-to-1 ratio.

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