Options Traders Expecting Short-Term Downside For ARK Innovation ETF

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that ARK Innovation ETF ARKK traded at 1.4 times its average daily options volume on Monday. With over 200,000 contracts traded, it “was the ninth-busiest ETF option today,” he added.

Check out other stocks making moves in the premarket.

There was a buyer of 3300 of the October 32 puts at an average price of 45 cents per contract, Khouw mentioned. “There were a lot of big trades,” he stated. The trader expects the ARK Innovation ETF to decline by more than 13% by weekly expiration, he added.

ARKK Price Action: ARK Innovation ETF declined by 3.28% to settle at $36.30 on Monday.

Now Read: Ford, General Motors Shares Slide As 'Demand Destruction Seems Inevitable'

Market News and Data brought to you by Benzinga APIs
Posted In: Short IdeasOptionsMarketsMediaTrading IdeasCNBCMichael KhouwOptimize Advisors
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!