A block of short-dated downside Puts on the Materials Sector ETF were bought this morning, illustrating one customer’s hedge against a dramatic move within the next 9 days. When the ETF was trading near 23.53, the buyer paid 10 cents for 8000 Jan 20 puts to open a new position, an outlay of $80,000 that would require a 15% move lower just to break even. With expiration next week, this buyer may be protecting an existing short-put position in a nearby strike, or possibly worried about Alcoa earnings, due Jan 12.

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