Calls Purchased on the Triple Bear Energy ETF (ERY)
Shares of the Direxion Daily Energy Bear 3X ETF (NYSE: ERY) ended the session higher by 9.83%, trading at $13.19. The ETF has been running higher over the past two months as the energy sector comes under selling pressure.
Options traders are betting that the ETF could rally further. Though action was primarily in small lots, call volume was running at 2.25x the daily average with over 75% of all calls traded being purchases on the offer.
Traders were focusing on the $14.00 and $15.00 strikes in July and the $15.00 strike in August.
The Direxion Daily Energy Bear 3X ETF seeks daily investment results, before fees and expenses, of 300% of the inverse of the price performance of the Russell 1000 Energy index. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. It is nondiversified.
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