The top options trades so far today are in the SPDR 500 Trust (SPY), which is down $1.68 to $139.58, after an Apr 134 – 136 – 138 put butterfly spread is bought on the ETF for 20 cents, 75000X. Open interest is sufficient to cover, but this might be a new position designed to hedge the risk of further losses in the equity market over the next two and a half weeks. The best payoff happens if shares fall to $136 (~2.6%) through the April expiration (16 days).
About the Author (Author Profile)
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.