Market Events
Thursday, August 15th 2019
Real Estate in Trouble? A Put Buyer Thinks So
The unusual options volume report had VNQ the real estate ETF as the leader with a large put buyer.
Summary
Unusual options volume report shows a large put buyer for VNQ, Vanguard's Real Estate ETF, with a put almost 10% out of the money and expiring 5 days before Christmas. The $82 strike put expiring on December 20th was the largest trading option, indicating a put buyer in VNQ. The put-call strike slope also rose, pointing to lower strikes being bought.
Today, our unusual options volume report rang the bell for VNQ, Vanguard's Real Estate ETF. VNQ traded 10 times more options than it usually does and was the number 1 leader in unusual volume. The big options trade was a put almost 10% out of the money and expiring 5 days before Christmas.
Far and away the largest trading option was the $82 strike put expiring on December 20th. The put was trading at a 18.6% implied volatility yesterday and spiked up to a 19.5% IV with the stock down 1.3% today. The put-call strike slope also rose today. The slope will rise when lower strikes are bought. Both of these point to a put buyer in VNQ.
Here's more from the report:
Disclaimer:
The opinions and ideas presented herein are for informational and educational purposes only and should not be construed to represent trading or investment advice tailored to your investment objectives. You should not rely solely on any content herein and we strongly encourage you to discuss any trades or investments with your broker or investment adviser, prior to execution. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. Option trading and investing involves risk and is not suitable for all investors.
All opinions are based upon information and systems considered reliable, but we do not warrant the completeness or accuracy, and such information should not be relied upon as such. We are under no obligation to update or correct any information herein. All statements and opinions are subject to change without notice.
Past performance is not indicative of future results. We do not, will not and cannot guarantee any specific outcome or profit. All traders and investors must be aware of the real risk of loss in following any strategy or investment discussed herein.
Owners, employees, directors, shareholders, officers, agents or representatives of ORATS may have interests or positions in securities of any company profiled herein. Specifically, such individuals or entities may buy or sell positions, and may or may not follow the information provided herein. Some or all of the positions may have been acquired prior to the publication of such information, and such positions may increase or decrease at any time. Any opinions expressed and/or information are statements of judgment as of the date of publication only.
Day trading, short term trading, options trading, and futures trading are extremely risky undertakings. They generally are not appropriate for someone with limited capital, little or no trading experience, and/ or a low tolerance for risk. Never execute a trade unless you can afford to and are prepared to lose your entire investment. In addition, certain trades may result in a loss greater than your entire investment. Always perform your own due diligence and, as appropriate, make informed decisions with the help of a licensed financial professional.
Commissions, fees and other costs associated with investing or trading may vary from broker to broker. All investors and traders are advised to speak with their stock broker or investment adviser about these costs. Be aware that certain trades that may be profitable for some may not be profitable for others, after taking into account these costs. In certain markets, investors and traders may not always be able to buy or sell a position at the price discussed, and consequently not be able to take advantage of certain trades discussed herein.
Be sure to read the OCCs Characteristics and Risks of Standardized Options to learn more about options trading.
Related Posts
