Large block of upside June 12 calls bought in the homebuilder ETF on the ISE this afternoon. Customer bought a total of 90,000 contracts, 45cents on most. Opening and nearly 30% out of the money.
Note that similar activity surfaced Monday before XHB rallied 11 percent Tuesday. It appears that some large traders are accumulating bullish on the exchange-traded fund. The April 9/11 or June 10/12 call spread might be an interesting way to piggyback the recent activity.
Category: All ETFs
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Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.