Puts Purchased on The DB Commodity ETF (DBC)
November 16, 2010 2:15 PM
Shares of The Powershares DB Commodity Index Tracking Fund (NYSE: DBC) are lower on the session by 2.69%, currently trading at $24.61. The ETF has been moving largely higher over the past four months and is currently trading above the 50-day and 200-day moving averages. Shares are currently testing the 50-day, though.
Options traders are buying puts on the name today. A short while ago the November $25.00 put was purchased 1,750 times, on the offer, on open interest of 2,101 contracts. The Nov $24.00 put was also purchased 1,300 times on open interest of 981 contracts. This signals new positioning on the name.
Overall put volume is now running at 6.18x the daily average with 91% of all puts traded being purchases on the offer.
The Powershares DB Commodity Index Tracking Fund seeks to track changes, whether positive or negative, in the level of the Deutsche Bank Liquid Commodity index-Optimum Yield Diversified Excess Return. The fund will pursue its investment objective by investing in a portfolio of exchange-traded futures on the commodities comprising the index, or the index commodities.
The index commodities are light, Sweet Crude Oil (WTI), Heating Oil, RBOB Gasoline, Natural Gas, Brent Crude, Gold, Silver, Aluminum, Zinc, Copper Grade A, Corn, Wheat, Soybeans, and Sugar. The index is composed of notional amounts of each of the index commodities.
