Transport stocks are battling higher, and one investor
apparently thinks that there's no going back.
optionMONSTER's tracking programs detected
in the iShares Trust Dow Jones Transportation Average, which
includes names such as Union Pacific and C.H. Robinson Worldwide.
More than 2,000 October 80 IYT puts traded for $2 to $2.20 against
open interest of 1,511 contracts.
Writing protection is a common strategy when investors like a stock
but don't want to spend the capital getting long. It's also popular
at this point in the expiration cycle
because the value of the puts stands to collapse at an accelerating
pace as the options near the end of their lifespan on Oct. 21. (See
The IYT is up 2.9 percent to $80.42 in morning trading and has
risen almost 7 percent in the last week. It had lost about
one-quarter of its value between late July and early October.
Overall option volume in the fund is more than 4 times greater than
average so far today.
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