The Russell 2000 Index has rallied hard, but now one investor is looking for a pullback.
optionMONSTER's Depth Charge tracking system detected a large trade in the weekly puts on the iShares Russell 2000 Index fund, which tracks the Russell. A block of 10,000 contracts were bought at the 71 strike for $0.82 and an equal number were sold at 69 for $0.37.
The trade resulted in a cost of $0.46, and will earn a maximum profit of 335 percent if IWM closes at or below $69 on expiration Friday afternoon.
The fund dropped 1.10 percent to $71.28 in morning trading and is up about 10 percent in the last week. That outpaces gains in other major benchmarks such as the Nasdaq 100, the S&P 500 and the Dow Jones Industrial Average.
The Russell is also attempting to break a key resistance level from earlier in August. See our daily technical story for more.
Overall options volume in IWM is still below average, but puts account for more than 70 percent of the total thus far.
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