Calls Sold on the TWM Bet Small Caps could Rise (TWM)

Shares of the PROSHARES ULTRASHORT RUSSELL 2000 ETF TWM are lower on the session by 3.29%, currently trading at $20.88. The ETF has been rallying over the past two months as stocks slid lower; the ETF is now nearing resistance. Options traders are selling calls on the index today as well, further emphasizing that small caps could rally. The August $29 call was sold 6,200 times for $0.85. Call volume is now running at 5.6x the daily average. The PROSHARES ULTRASHORT RUSSELL 2000 ETF seeks daily investment results, before fees and expenses that correspond to twice the inverse of the daily performance of the Russell 2000 index. The fund invests in derivatives that advisers believe should have similar daily return characteristics as twice (200%) the inverse of the daily performance of the Index. It typically invests the rest of the assets in money market instruments. The fund is nondiversified.