Ark Innovation ETF (NYSE: ARKK) is down over 30% because it reached an all-time-high of $159.70 on Feb. 16, however choices merchants could also be seeing extra draw back for Cathie Wooden’s fund, which holds shares of firms that Wooden feels are disruptive innovators.

The ARKK Trades: At 2:09 p.m. Thursday a dealer executed a put sweep of seven,238 ARKK choices with a $100 strike worth expiring April 16. The commerce represented a $38,000 bearish wager for which the dealer paid $5.25 per possibility contract.

At 1:04 p.m., a dealer executed a put sweep of 400 ARKK choices with a $110 strike worth expiring on Jan. 20, 2023. The commerce represented a $1.4-million bearish wager for which the dealer paid $26 per possibility contract.

At 11:16 p.m., a dealer executed a put sweep of 1,500 ARKK choices with a $125 strike worth expiring Could 21. The commerce represented a $2.49-million bearish wager for which the dealer paid $16.60 per possibility contract.

At 11:15 p.m., a dealer executed a put sweep of 819 ARKK choices with a $100 strike worth expiring on Could. 21. The commerce represented a $1.35-million bearish wager for which the dealer paid $16.50 per possibility contract.

At 11:15 p.m., a dealer executed a put sweep of 1,028 ARKK choices with a $125 strike worth expiring on Could. 21. The commerce represented a $1.7-million bearish wager for which the dealer paid $16.50 per possibility contract.

At 11:15 p.m., a dealer executed a put sweep of 1,087 ARKK choices with a $125 strike worth expiring on Could 21. The commerce represented a $1.78-million bearish wager for which the dealer paid $16.40 per possibility contract.

Collectively, merchants are betting virtually $8.76 million that the share worth of ARKK goes decrease.

Why It’s Necessary: When a sweep order happens, it signifies the dealer wished to get right into a place shortly and is anticipating a big transfer in inventory worth will happen imminently.

A sweeper pays market worth for the decision choices, as a substitute of inserting a bid, which sweeps the order e-book of a number of exchanges to fill the order instantly.

Some of these name possibility orders are normally made by establishments, and retail traders can discover looking ahead to sweepers helpful as a result of it signifies “sensible cash” has entered right into a place.

About ARKK: Cathie Wooden’s Ark ETFs have been wildly well-liked this 12 months, and retail traders watch the fund’s exercise every day to see which firms are being purchased and bought.

ARKK holds quite a few shares on this fund well-liked with retail merchants comparable to Telsa Inc (NASDAQ: TSLA), Palantir Applied sciences (NYSE: PLTR) and DraftKings (NASDAQ: DKNG).

Though ARKK holds some prescribed drugs and biosciences firms, most of its holdings are within the tech sector, which is in a rout.

Watch Benzinga’s current interview with Cathie Wooden right here: