“One large institutional trader is making a big bet that the S&P 500 will be almost 20 percent higher by the end of the year. It is rare that we find unusual trades in the S&P 500 SPDR (SPY) because of the massive volume seen by the ETF, which is far and away the most widely traded option series with an average daily turnover of more than 1.5 million. By contrast Apple, one of the top equities in terms of option volume, averages 271,000 contracts per session,” Option Monster Reports.

“optionMONSTER’s systems identified a large bullish call spread in the December expiration yesterday. A trader bought 60,000 December 124 calls for $2.15 and, at the same time, sold 60,000 December 130 calls for $1.05. The open interests were 22,961 and 908 respectively, so these were new opening positions at both strikes.”

“This call spread cost $1.10, which is the risk of the trade and the loss if shares are below $124 at expiration. The maximum payout is $4.90 if shares are above $130. This trade is looking for shares to return to levels last seen before September 2008,” Option Monster Reports.

The investment (SPY) seeks to correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Index. SPDR Trust is an exchange-traded fund that holds all of the S&P 500 Index stocks. It is comprised of undivided ownership interests called SPDRs. The fund issues and redeems SPDRs only in multiples of 50,000 SPDRs in exchange for S&P 500 Index stocks and cash.

TOP 10 HOLDINGS ( 19.26% OF TOTAL ASSETS)

Company Symbol % Assets Apple Inc. (AAPL) 1.9 AT&T Inc (T) 1.66 Chevron Corporation (CVX) 1.55 Exxon Mobil Corp. (XOM) 3.25 General Electric Co (GE) 1.61 International Business Machines (IBM) 1.72 JPMorgan Chase & Co. (JPM) 1.65 Johnson & Johnson (JNJ) 1.78 Microsoft Corporation (MSFT) 2.36 Procter & Gamble Co. (PG) 1.78

 

 

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