Index Options Trades Showing Some Worries
Ahead of a key Federal Open Market Committee meeting, index options are ringing a warning bell.
Although the S&P 100 index, the OEX, is up 5.2 to 687.8, somebody was loading up on an insurance policy against or a bet on a market reversal after the news from the Fed. Action picked up in the October 670 puts, which traded more than 4,300 contracts by midmorning Tuesday, with the last price at 5 ($500), down 3/4 ($75). All that busy trading amounted to about half-open interest -- or established positions -- in that October strike price.
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