Trading is heavy in the S&P 500 pit today, as the index trades down 25 points to 1285.33. Volume through midday is 483,000 puts and 158,000 calls. The projected volume is 1.2 million contracts and about 50 percent more than the recent daily average for SPX. June 1200 puts are the most actives, with put flys driving much of the volume in the contract. To be specific, the Jun 1160 – 1200 – 1240 put butterfly spread traded multiple times just after 10:00 ET. 5,000 were apparently bought for $2.90. All told more than 30,000 were apparently bought representing a massive amount of notional value and seems to reflect the view the S&P 500 might lose another 6.5% (to 1200) over the next two weeks.
Category: All Indexes
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.