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July 1, 2009 11:28 EDT Related Symbols: SPY
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
Recapping Jim Cramer’s the Financial Select SPDR (XLF) Pick and Corresponding Option Plays
Recapping Jim Cramer’s the Financial Select SPDR (XLF) Pick and Corresponding Option Plays
July 1, 2009
Mad About Options takes a look at the stocks getting coverage from Jim Cramer and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick – The Financial Select SPDR (XLF):
Back in April, ONN.tv ask investors how XLF could fit into those who thought the market has bottomed out with all these financials. XLF stock is now trading at $11.86 a share compared to $9.77 a share in the beginning of April. That makes this trade a 21% winner for XLF bulls.
Bullish Option Traders:
Option traders who were similarly bullish on XLF bought Sept. 11 calls for $1.61 and sold Sept. 16 calls for 35 cents, paying $1.26 for the trade. This spread is now marked at $1.45, making this a winner of 19 cents with the stock up $2.09.
Bearish Option Traders:
On the con side, bearish investors bought Dec. 12 puts for $3.05 per contract and bought Dec. 12 calls for $1.61 per contract. Investors paid $4.66 for this trade, and the spread is now marked at $2.78. The trade was a loser of $1.88 with the stock up $2.09.
For more trading ideas and breaking news on the options market, stay tuned in to www.ONN.tv.
