Protection Purchased on the Transports (IYT)
Shares of the iShares Dow Jones Transportation Average Index Fund (NYSE: IYT) are lower on the session by 1.43%, currently trading at $75.31. The ETF has been moving largely lower over the past five months, though it appears to be in a bottoming pattern.
Options traders are buying protection on the index today, though this may be as a hedge to long shares given that we are trading at the low end of the recent trading range. If that were the case, this would indicate bullish activity. The September $75.00 put was purchased 2,500 times, on the offer, for $2.70 earlier in the session; open interest on the strike is 176 contracts.
Put volume is now running at 3.5x the daily average.
The iShares Dow Jones Transportation Average Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones Transportation Average index. The fund uses a representative sampling strategy to try to track the index. The index measures the performance of the transportation sector of the U.S. equity market. The index includes companies in the following primary groups: airlines, trucking, railroads, air freight, transportation services and industrial services. It is nondiversified.
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