Calls Purchased on the Ultrashort Oil & Gas ETF (DUG)

Shares of the Proshares Ultrashort Oil & Gas ETF

were higher on the session by 6.22%, ending at $74.27. The ETF has been rallying as of late as the oil & gas space experiences a plethora of selling pressure. Options traders believe that the ETF could run even higher. Though today’s action consisted primarily of small lots, call volume is now running at 3.25x the daily average. Traders were buying the $77.00 strike in the near term and strikes as high as $90.00 in the out months. The Proshares Ultrashort Oil & Gas ETF seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the Dow Jones U.S. Oil & Gas index. The fund invests in derivatives that its advisors believe should have similar daily return characteristics as twice (200%) the inverse of the daily performance of the Index. It invests typically the rest of the assets in money market instruments. The fund is nondiversified.