Cathie Wood's ARK Innovation ETF (NYSE:ARKK), which has holdings of companies like Tesla Inc (NASDAQ:TSLA), Teladoc Health Inc. (NYSE:TDOC) and Coinbase Global Inc. (NASDAQ:COIN), has lost more than 24% year to date.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that puts outpaced calls by more than three times on Monday.
There were buyers of 10,800 December 90 puts, at an average price of $1.22 per contract, Khouw mentioned. Traders of these put contracts are betting that ARK Innovation ETF will lose at least another 5% by the end of this week.
“ETFs typically will see more puts trading than calls, unlike single stock equities, and the reason for that is a lot of investors like to use ETFs to hedge their portfolio exposure,” Khouw commented.
Related Link: This Stock Is Down 35% YTD And Cathie Wood Continues To Load Up
