Mike Yamamoto from Option Monster Reports “Options traders are buying calls at various strikes and sizes in the triple-short FAZ, which is up more than 6 percent on the day to $5.21. Calls outnumber puts by more than 5 to 1, according to optionMONSTER’s Depth Charge tracking system.”
Mike Yamamoto continues saying “Activity was heaviest at the ETF’s June 5 strike, where nearly 25,000 calls had traded only halfway through the session, most of them at or near the ask price in a strong buying pattern. Traders were also buying calls in the June 6 and July 5 contracts. ”
The ETF “FAZ” seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index.
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