“iShares Dow Jones U.S. Real Estate (IYR): The real estate exchange-traded fund attracted one trader to initiate a pint-sized bullish reversal in the January 2010 contract Tuesday. The bullish reversal involved the sale of 1,000 puts at the January 33 strike for $2.50 apiece spread against the purchase of 1,000 calls at the higher January 41 strike for $3.20 each. The net cost of the transaction amounts to 70 cents and positions this investor to accumulate profits above a share price of $41.70 by expiration. The fund must rally 6% from the current price in order for the bullish player to break even on the trade,” Andrew Wilkinson Reports From Forbes.
The investment (IYR) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Real Estate Index. The fund generally invests at least 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. It may invest the remainder of assets in securities not included in its underlying index but which BGFA believes will help the fund track underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA.
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