The Dow Jones Industrial Index (.DJX), an index equal to 1/100th of the Dow Jones Industrial Average, saw interesting activity late Friday when a flurry of March 50 puts traded during the final 15 minutes. The index closed up .69 to 82.81 and the contract traded 15 times, at the offer between 28 and 32 cents. Volume approached 16,000 contracts and with existing open interest of 3,361, the buying looks like a new position in the deep out-of-the-money puts. If so, it is possible disaster insurance because the Dow would need to sink below 5,000 for these puts to move in-the-money by March options expiration (59 days).Ãƒâ€šÃ‚Â
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.