The iShares High-Yield Corporate Bond Fund doesn't show up on our tracking systems often, but yesterday it saw heavy option activity that signaled bullish sentiment toward the market.
Traders focused primarily on a select few strikes, starting with the June 95 calls, according to OptionMonster's tracking systems. They then shifted to the January 94 calls, which were sold, while the February 95 calls were bought as a bullish position was adjusted.
Calls lock in the price where investors can buy shares in the fund, so if it goes up those contracts will generate some nice leverage. But these options will also expire worthless if the stock fails to move by their expiration dates.