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Size four-way spread in the Regional Banking ETF rolls a defensive position.

Size four-way spread in the Regional Banking ETF rolls a defensive position. With shares off 16c to $52.43, 31K Jun 45 - 51 put spreads sold at 70c to buy 31K Aug 44 - 50 put spreads for 33c. The vertical in the August term is opening and the other legs probably close from 4/9 when the same vertical printed $1 with shares $53.16. In other words, the activity today rolls a long vertical to August from June, down one strike, after a 1.4% decline in shares. It monetizes a loss on the Jun 45 - 51 put spread and expresses concerns about further losses in the banking sector with the new position in August.

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Publication:The Fly
Date:Jun 5, 2019
Words:116
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