Market News

November 25, 2016  Fri 7:47 AM CT

A large trader is positioning for more downside potential in the iShares Barclays 20+ Year Treasury Bond Fund.

OptionMonster's monitoring system shows that 22,000 Weekly 119 puts expiring today were sold for $0.21 while 15,000 Weekly 117.50 puts expiring on Dec. 2 were purchased for $0.48 on Wednesday. Volume was below open interest in the near-term contracts, indicating that a bearish position was rolled forward by a week to a lower strike and reduced in size.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

TLT fell 0.39 percent to $120.64 on Wednesday and is down 13 percent in the last three months. Overall option volume in the fund was twice its daily average.

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