Options Bets Against U.S. Materials Companies Surge
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Trading of bearish options on U.S. materials and chemicals companies surged after an investor bet that the industry’s shares will fall in the next month.
More than 73,000 puts on the Materials Select Sector SPDR Trust changed hands, seven times the four-week average and the most since May 4. The exchange-traded fund tracking 32 companies rose 0.6 percent to $31.14. An investor bought 30,000 of the July $32 puts while selling the same amount of July $30 puts, a spread trade that pays the most if the stock falls below the lower strike price by July 16.