The IYR Jul 72/77 put spread was bought for 1.15 and the Jul 76/71 later in the day, again for 1.15.
iShares Dow Jones US Real Estate ETF, trading 77.93 with an IV 30 of 17.35 and an HV 10 of 14.85, saw two large July put spreads trade.? The ETF, with an ADV of 29,000 and an OI of 835k, saw the July 77/52 and 76/71 put spread trade in bulk. First, a customer bought 9,000 of the July 77 puts for 1.74 and bought 9,000 of the July 72 puts. Then a similar trade went up with the customer buying 5,000 of the July 76 puts for 1.77 and sold the July 71 puts at .62.? Net the 72/77 put spread was bought for 1.15 and the 76/71 later in the day for 1.15 yet again.
These appear to be customers setting up a hedge against rising interest rates or weakness in the real estate market over the next few months.? This could be a hedge against a June rate hike.? Regardless the customers fear that IYR could ease lower.
This trade should be considered bearish IYR and bullish IYR volatility.