SPDR Homebuilder Trust (XHB) is up 23 cents to $21.75 and an investor has been building a Sep 18 – 20 put spread on the ETF today. The flow has been in mixed sized lots, mostly on the International Securities Exchange. The spread has been bought a total of 8,165X on ISE so far. About 33 cents is being paid to open new positions in a customer account, according to ISEE. More than 10,000 traded in both contracts. If bought, the Sep 18 – 20 put spread on XHB offers its best payout if shares fall to $18 or less through the September expiration, which repreents a 17.2 percent slide over the next 8 weeks. Shares have performed well in 2012 and are up 27.1 percent year-to-date. The 52-week high of $22.21 dates back to May 2.
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.