The recent flurry of activity in the options on the iShares Small Cap Fund (IWM) is part of a four-way spread, in which the investor sold 11,000 Jun 72 – 80 puts at $4.15 on the ETF to buy 53,000 Sep 66 – 74 puts pread for $2.23 on CBOE. The spread likely rolls a hedge from June ahead of the expiration to a new larger position in September at lower strike prices. Overall volume in IWM is respectable today, with 34 milloin shares and 469K options traded in the product. 373K puts and 96K calls so far.
Category: All ETFs
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.