Calls Purchased on Basic Material Names (UYM)

Shares of the Proshares Ultra Basic Materials ETF UYM are higher on the session by 2.47%, currently trading at $26.98. The ETF has been moving largely lower over the past three months as material names have fallen. Options traders are buying calls on the ETF though, betting that it may be at a short-term bottom. The August $25.00 call was purchased 1,800 times, on the offer, a short while ago; open interest on the strike is only 280 contracts, which signals new, bullish positioning on the name. Call volume is currently running at 3.45x the daily average. The Proshares Ultra Basic Materials ETF seeks daily investment results, before fees and expenses, which correspond to twice the daily performance of the Dow Jones U.S. Basic Materials index. The fund invests in equity securities and derivatives that its advisors believe, in combination, should have similar daily performance characteristics as twice (200%) the daily return of the index. It invests typically the rest of the assets in money market instruments. The fund is nondiversified.