Traders Could Continue To Short Corporate Bonds

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that iShares iBoxx $ Investment Grade Corporate Bond ETF LQD traded 10 times its average daily put volume, he added.

Check out assets making big moves in the premarket.

Start Futures Trading Fast — with a $200 Bonus

Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection.

There was a buyer of 138,000 of the October 95/85 put spreads an average price of 50 cents per contract, Khouw mentioned. Traders expect this ETF to lose as much as 20% by October expiration, he added.

Also Read: Tesla Finds A Buyer Again In Cathie Wood As Ark Loads Up $1.8M On Latest Dip