Traders Anticipating More Downside For SPDR S&P 500 ETF

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that SPDR S&P 500 ETF Trust SPY traded 1.3 times its average daily put volume on Monday. This may not sound like a big increase, but it's more than a million extra put contracts traded, he added.

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There were buyers of 45,286 of the September-9 weekly 359-puts at an average price of 34 cents per contract, Khouw mentioned. Traders bet $1.5 million that SPDR S&P 500 ETF will decline by at least 11% by the end of next week.

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SPY Price Action: Shares of SPDR S&P 500 ETF declined by 0.66% to settle at $402.63 on Monday.