Real Estate in Trouble? A Put Buyer Thinks So

The unusual options volume report had VNQ the real estate ETF as the leader with a large put buyer.

Summary

Unusual options volume report shows a large put buyer for VNQ, Vanguard's Real Estate ETF, with a put almost 10% out of the money and expiring 5 days before Christmas. The $82 strike put expiring on December 20th was the largest trading option, indicating a put buyer in VNQ. The put-call strike slope also rose, pointing to lower strikes being bought.

Today, our unusual options volume report rang the bell for VNQ, Vanguard's Real Estate ETF. VNQ traded 10 times more options than it usually does and was the number 1 leader in unusual volume. The big options trade was a put almost 10% out of the money and expiring 5 days before Christmas.

Far and away the largest trading option was the $82 strike put expiring on December 20th. The put was trading at a 18.6% implied volatility yesterday and spiked up to a 19.5% IV with the stock down 1.3% today. The put-call strike slope also rose today. The slope will rise when lower strikes are bought. Both of these point to a put buyer in VNQ.

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