Put spread targets mini-Nasdaq 100

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A put credit spread topped yesterday's action in the mini-Nasdaq 100 Index options.

optionMONSTER systems show that more than 26,000 MNX options changed hands, compared to a daily average of just 511. Only 74 of those options were calls, and almost all of the volume was in one put spread.

A trader sold the January 262.50 puts, most of them for $0.56, and bought the January 257.50 puts for $0.26. Almost 13,000 of each traded well above the respective open interests of 121 and 37 at the two strikes, so this is a new position.

The trader is selling this put credit spread , taking in a credit of $0.30. This means that he or she stands to make a maximum of $0.30 if the MNX is above the higher strike but can lose a maximum of $4.70 if it is below 257.50. (See our Education section)

The MNX finished the session at 273.23, down 0.52 percent on the day. Wednesday's close was its highest since mid-October, when the index came off a 52-week high above $287.

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