Downside position in real-estate fund

optionMONSTER

A large put spread dominates today's option activity in the iShares U.S. Real Estate Fund as it trades just off its highs.

optionMONSTER systems show that a trader bought 4,000 September 64 puts for $2.20 and sold 4,000 September 54 puts for $0.56. Open interest was 16 and 0 respectively, so this is a new vertical spread . (See our Education section)

This position cost the trader $1.64, which is the maximum potential loss if shares are above $64 at expiration in mid-September. The maximum gain of $8.36 would be realized if the exchange-traded fund is below $54 at that time.

The IYR is flat on the session at $67.58 in early afternoon trading. The stock was down at support at $61 in mid-November and climbed to $68.31 last week, its highest price since June 2008.

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