Puts Purchased on The Home Construction Index (ITB)
August 16, 2010 11:04 AM
Shares of the iShares Dow Jones U.S. Home Construction Index Fund (NYSE: ITB) are higher on the session by 0.64%, currently trading at $10.99. The ETF has been moving largely lower over the past three months, off from highs near $15.75.
Options traders are buying puts today, perhaps as hedges to long shares. The August $12.00 put was purchased 1,200 times on open interest of 1,315 contracts and the September $10.00 put was purchased 4,000 times on no open interest.
Put volume is now running at 7.90x the daily average.
The iShares Dow Jones U.S. Home Construction Index Fund seeks investment results that tracks Dow Jones U.S. Select Home Construction index. The fund generally invests at least 90% of assets in securities of the Underlying index and depositary receipts representing securities of the Underlying index. It may invest the remainder of assets in securities not included in the Underlying index but which BGFA believes will help the fund track Underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. The fund is nondiversified.
