As north American equities take a beating, 2 big trades in the XIU - iShares™ CDN LargeCap 60 Index Fund indicate that some very large institutional type investors think that the S&P®/TSX® 60 index is in for a rough time in the weeks ahead.
The Montreal Exchange Most Active Options Screener detected the purchase of 62,500 October 16 and 62,500 October 16.5 puts on the XIU - iShares™ CDN LargeCap 60 Index Fund which seeks to replicate the performance of the S&P®/TSX® 60 index. The Index is comprised of 60 of the largest (by market capitalization) and most liquid securities listed on the TSX. The put buying would seem to indicate that someone is betting or at the very least buying insurance in the instance that the SP®/TSX® 60 index will have lost between 6-8% of its value in the month ahead.
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