Heavy trading in SPDR 500 Trust continues and puts lead calls 2:1
Heavy trading in SPDR 500 Trust continues and puts lead calls 2:1. The ETF up $4.37 to $276.54 and has recovered almost one-third of the $13.42 loss suffered over the previous five trading days. SPY share and option volume running at nearly double the normal pace: 22M shares and 750K contracts through thirty minutes. Oct 255, 265, 275 puts are most active and the volume includes 15.5K Oct 255 - 265 - 275 put butterfly spreads for $1.68 (a position that pays off on a move to $265 through the end of next week). On the other hand, 30K Oct 26th 287.5 - 300 call spreads for 41c appears to be long call spread on expectations for a rebound in the two weeks ahead. Still, volume is notably lopsided at 500K puts and 250K calls, as the recent uptick in volatility is stirring up hedging activity with SPY puts.