Downside position in real-estate fund
Chris McKhann | [email protected]
optionMONSTER systems show that a trader bought 4,000 September 64 puts for $2.20 and sold 4,000 September 54 puts for $0.56. Open interest was 16 and 0 respectively, so this is a new vertical spread. (See our Education section)
This position cost the trader $1.64, which is the maximum potential loss if shares are above $64 at expiration in mid-September. The maximum gain of $8.36 would be realized if the exchange-traded fund is below $54 at that time.
The IYR is flat on the session at $67.58 in early afternoon trading. The stock was down at support at $61 in mid-November and climbed to $68.31 last week, its highest price since June 2008.