Hefty three-way in iShares Russell Small Cap Fund (IWM), which is now flat at $83.08, after one investor apparently sold 25,000 Jun 89 calls on the ETF at 85 cents to buy 25,000 Jun 70 – 77 put spreads for $1. Looks like a new position and one possibly designed to hedge risk of a market slide during the second quarter after the 12.5 percent advance for the Russell 2000 during the first.
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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.