Shares of the iShares Nasdaq Biotechnology Index Fund (IBB) are trading higher on the session by 1.54%, at $133.89. The ETF recently broke down through the 50-day moving average and is nearing support at the 200-day.
One trader is betting that the IBB may not be near a bottom and is buying downside protection. A short while ago the December $130/122 put spread was purchased 2,500 times for $1.90. Volume far exceeded open interest on both strikes.
Overall put volume is now running at 5x normal volume.
30-day implied volatility is off 6% today to 23.65%, while 10-day realized vol is registering 23.43%.
The iShares Nasdaq Biotechnology Index Fund seeks investment results that correspond generally to the price and yield performance before fees and expenses of the NASDAQ Biotechnology Index.?