Amazon Options Bet Against Further Gains

The implied volatility of that option is 66%. The 30-day historical volatility is at 55%, while the 10-day is at 30. All of this adds up to this being a lottery ticket, unless this trader knows something about one of the underlying companies.

Monsanto(MON Quote), DuPont(DD Quote), Dow Chemical (DOW Quote), Freeport-McMoran(FCX Quote), and Newmont Mining (NEM Quote)together make up roughly 45% of this ETF. Short-term out-of-the-money options are generally favorites for insider trading, though I am NOT saying that that is what this necessarily is.