Interesting spread trades in the PHLX Semiconductor Index (.SOX) Thursday. SOX added 7.68 to 424.77 on a day of relative strength in the chip sector. In options action, one investor initiated a Feb 365 – 390 – 415 put fly for a net debit of $4.40, 1000X. The spread, which was opening, might be a hedge or outright bearish bet, as it makes its best profits if the chip index falls to 390 by the February expiration, or 8.2 percent in 42 days.
Category: All Indexes
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.