SPDR Financials (XLF) is off a nickel to $16.16 and the May 15 – 19 strangle is sold at 21 cents, 50000X. Looks like it’s closing half a position opened in mid-Feb when the same strangle was bought at 32cents, 100000X (see 2/15 color). Shares are down 5.7 percent since that time, but the move has not been volatile enough to offset the negative impact from time decay. Implied volatility is up from about 20.5 to 22 during that time.
Category: All ETFs
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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.