Traders Hedging ETF Positions with Options

Traders have recently been buying put options on some popular exchange traded funds according to the WSJ‘s Tennille Tracy.

In the article Buyers Like Options on ETFs,Tracy writes that traders are taking advantage of a drop in volatility levels to buy January 2011 put options on the Technoogy Select Sector SPDR Fund (XLK).   Other ETFs with active put buying include the Health Care Select Sector SPDR Fund (XLV) and the Consumer Discretionary Select Sector SPDR Fund (XLY).

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