SPDR S&P Retail (XRT) $62.45 -0.25%

| October 12, 2012 | 0 Comments More

SPDR Retail Trust (XRT) loses 8 cents to $62.53 and 20,000 Oct 63 puts are sold on the ETF at 75 cents per contract to buy 20,000 Nov 58 – 62 put spreads for 85 cents. The three-way traded on ISE and data from the exchange suggest rolling — closing October to open a new position in the November put spread. It looks like the Oct 63 puts were opened on 9/25 for $1.20 per contract when XRT was trading at $62.81. Although shares are down .5 percent since that time (and IV up to 174 from 16.8), the position is being liquidated for a loss due to time decay. A new position is being opened in the November downside puts ahead of a report on September Retail Sales Monday morning.

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.