Huge Volatility Bet on Real Estate ETF

| January 25, 2013 | 0 Comments More

Largest trade of the day printed a few minutes ago as a buyer paid 47cents for the Feb 67 – March 70 strangle 69200x as the Real Estate ETF traded near 68.05. Both legs open, and with atmiv below 9% (30day realized is 7.7%), the buyer is making a sizeable ($3.2Million in premium) bet that the recent ultra quiet period of volatility may pass.

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Category: All ETFs

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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.