Trader targets floor in Treasury ETF

Chris McKhann (
December 5, 2013

The iShares 20+ Year Treasury Bond Fund is seeing heavy put selling for the second day in a row.

Yesterday's action was tied to TLT stock in a range-bound strategy , but today's put sale appears to have been done outright. optionMONSTER systems show that a trader sold 12,000 December 101 puts in a single print for the bid price of $0.59 this morning. The volume topped the strike's previous open interest, indicating that this is a new position.

The put seller is looking for the TLT to remain above $101 in the next two weeks. The trader also takes on the risk of having to buys shares if they dip below that strike price. (See our Education section)

The TLT is down fractionally again this morning at $102.54, which would be the exchange-traded fund's lowest close since Aug. 21. It was above $108 into late October. 

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