Why big trader is selling puts in SPY
The SPDR S&P 500 Fund is fighting to stay in positive territory, and the big option trading this morning is in the Weekly puts.
The SPY is up 0.08 percent at $141.06. The exchange-traded fund has run up from $128 to the highest prices since it peaked in April.
A trader has sold 40,000 Weekly 137 puts for the bid price of $0.11, optionMONSTER's systems show. These Weekly contracts just became available, so there was no open interest.
The put selling is a bet that the SPY will hold up above $137 through the end of next week. The trader is looking to collect some premium in this sideways market and is willing to buy shares if they fall below the strike price.
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