On CNBC's Options Action, Dan Nathan spoke about options activity in SPDR S&P 500 ETF Trust SPY ahead of the important Fed meeting on September 17. The put options volume was 1.5 times higher than the call options volume on Thursday.
Expiration day for options is on September 18 and Nathan calculated that the implied move for the stock is 4 percent in each direction. He explained that SPDR S&P 500 ETF Trust has to break down below $188.15 or jump above $203.15 for traders who bought straddle to make money.
Nathan added that implied volatility is high at the moment and he advised traders who want to buy options to use spreads.
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