December SPY Straddle

I just saw a large December 123$SPY Straddle cross. That’s a very short-term bullish option trade and looks something like this:

SPY Straddle

You can pick up this trade for about $3.10. The chart above is with 10 contracts.

The trade I saw had 8100 contracts for a cost of about 25K (which would be the max loss). The trader is betting that before Friday of this week the $SPY will trade over 126 or under 120, the two break-even points.

I personally don’t like this trade, but thought I’d point out a large bullish option bet.