A large trader is extending a downside position in the iShares Dow Jones U.S. Real Estate Index Fund.
OptionMonster's market scanner shows that 9,751 November 70 puts were sold for $0.10 while 9,751 Weekly 69 puts expiring on Nov. 25 were purchased for $0.16 yesterday. Volume was below open interest in the nearer-term contracts, which expire at the end of this week, indicating that a downside position was rolled forward by a week to a lower strike.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
IYR rose 1.73 percent to $74.53 yesterday but is down 12 percent in the last three months.
Overall option volume in the fund was 3 times greater than average yesterday. Puts outnumbered calls by a bearish 3-to-1 ratio.
More From optionMONSTER