Paper bought 10,000 EIF Aug 110 puts tied to stock, 5,000 Aug 112 puts and another 5,000 Aug 109 puts
iShares Barclays 7-10 Year Treasury ETF, trading 112.92, is essentially a play on the 10 year note.? The ETF, with an IV30 of 6.58 and an HV10 of 5.92%, is seeing active put buying.? Traders have bought 10,000 of the Aug 110 puts tied to stock paying .20 and another 5,000 of the 112 puts for .60 and another 5k of the 109 puts for .15.? All of these appear to be opening.? They also appear to be additive to the volume from yesterday. Someone is accumulating a large bear position in IEF.
These appear to be a vol purchase and protection purchase of IEF dropping the 10 year has been on a tear and currently the yield on the 10 year is less than 1.5% hanging near all-time low yields.? Traders appear to be playing these to slightly back off or at a minimum for the IV of IEF to increase.?
These trades are bearish the underlying and bullish volatility in IEF.