Nasdaq 100 Index (.NDX) $2798.00 -0.50%

| October 8, 2012 | 0 Comments More

Large put ratio spread starts the day in the Nasdaq100 index options as a customer buys 3000 Nov 2700puts for 31 and sells twice as many nov 2575 puts for 11.50. Net debit is $8 and the lower strike is opening. Flow history shows a similar qty of Nov 2700s were opened by a seller on 9/28 around 31.50 when the index was a bit higher, so today’s 1×2 may roll the short premium trade further out of the money while doubling the size.

Category: All Indexes

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Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.