Calls Purchased on the KBW Regional Bank Index (KRE)
August 20, 2010 12:52 PM
Shares of the SPDR KBW Regional Banking ETF (NYSE: KRE) are lower on the session by 2.74%, currently trading at $21.31. The ETF has been moving largely lower over the past five months and is trading below the 50-day moving average.
Options traders are buying calls on the ETF today, betting that financials may be at a short-term bottom. The December $26.00 call was purchased 2,500 times, on the offer, a short while ago; open interest on the strike is 15,085 contracts.
Call volume is now running at 2.42x the daily average.
The SPDR KBW Regional Banking ETF seeks to replicate the total return performance, before expenses, of the KBW Regional Banking index. The fund uses a passive management strategy designed to track the total return performance of the KBW Regional Banking index. The index is a float adjusted modified-market capitalization weighted index of geographically diverse companies representing mortgage banks, loan processors, marketing and service institutions listed on U.S. stock markets. The fund is nondiversified.
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