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November 11, 2009 9:30 EST
you're watching:
OptionsNews
An ahead-of-the-bell look at the market's biggest stories and a review of unusual options activity. Filled with smart market analysis from the ONN.tv team, "Options News" turns the market's top headlines into trading intelligence, hosted by Karla Yeh.
The XLF dropped slightly in the flat market yesterday, but one investor bought long-term puts for protection.
On today’s Options News, Carrie Long and the www.ONN.tv team look at implied volatility levels after a flat-market day, as the CBOE SPX Volatility Index (VIX) dropped 0.5% to 24. We could see greater volatility swings to end the week with jobless claims and consumer sentiment due out during the next two days.
XLF’s Pull Back Tuesday Sparks Protection Purchase
www.ONN.tv Senior Derivatives Specialist Jared Levy reviews option activity in the Financial Sector ETF (XLF). The XLF has come under the market spotlight with the 10th anniversary of the Gramm-Leach-Bliley Act upon us, which many players blamed for banks and wirehouses failing. The XLF has rallied 138% since it’s March lows of around $6, but at least one investor is purchasing downside protection on the ETF. An investor bought 40,000 June 12 puts for 75 cents versus open interest of 2,855 contracts, indicating that the trade opened the positions. XLF shares dropped slightly on the flat-market day, and underperformed the S&P 500 on Tuesday, but showed fresh session highs on Monday. Keep your eyes on the XLF with ONN.tv, as an indicator of confidence in the banking industry’s strength after its demise last year.
ONN.tv continues its webinar series tooday at 4:30 p.m. Eastern Time. Tune in for an in-depth look at the Butterfly Spread strategy and learn how to best use these limited-risk strategies that look for limited movement in the underlying. Sign up by clicking on the webinars tab at www.ONN.tv to reserve your seat. Sign up now – spots fill up quickly!
For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.
