Condor Options

Using Diagonal Spreads to Front-load Directional Risk

A large block trade in the S&P 500 ETF (SPY) reveals what one investor expects for the market over the coming weeks.  Chris McKhann has the details: In one trade of single blocks, executed all at the same time, an institutional trader sold 448,014 of the S&P 500 ETF (SPY) August 100 calls for 1.39, bought 298,676 of the October 106 calls for 1.37, and bought 149,338 of the September 103 calls for 1.51. All told, that…