Assuming this trade was a ratio spread, the trader might have sold 58, 000 October 4 puts, thus creating a two-to-one ratio with the purchased 29, 000 October 5 puts.
The combination of long stock and debit put spread positions the trader to make money on the upside if shares in Cree continue to rally, while also providing downside protection in the event of a pullback through February expiration.
In order to have a corresponding ounce-to-ounce spread trade in the futures market, a trader who is looking for the spread to narrow would buy two 50-ounce platinum futures contracts and simultaneously sell one 100-ounce gold futures contract.