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An Options Trader Makes a Big Hedge Against a Marijuana ETF

Gregory Calderone
An Options Trader Makes a Big Hedge Against a Marijuana ETF

An options buyer put a sizable hedge against the U.S. exchange-traded fund tracking the marijuana industry in a bet that pot stocks won’t continue to soar. The ETF lost 6.3 percent on Thursday, but has rallied nearly 40 percent over the last 30 days as its largest components -- Cronos Group Inc., Tilray Inc. and Canopy Growth Corp. -- have soared.