Protection Purchased on the GLL

Shares of the PROSHARES ULTRASHORT GOLD ETF

are lower on the session by 0.80%, currently trading $41.29. The ETF has been falling as of late as gold futures rise. The ETF is trading below both the 50-day and 200-day moving averages. I am detecting put buying in the ETF as well with the June $41 put purchased 3,100 times today; open interest on the strike is only 78 contracts, which signals new, bearish positioning. Given that this is a levered play on short Gold, put buying means that the traders is getting double-long Gold and that they think it will rise by at least 2.5% in June. The PROSHARES ULTRASHORT GOLD ETF will seek to replicate, net of expenses, twice the inverse daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.