The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) provides exposure to top U.S.-based corporate bonds, including those from Wall Street banks and blue-chip companies like AT&T and Oracle. A trader recently made a $2.645 million options bet on LQD, expecting movement above $114.07 or below $105.93 by June 18, betting on increased volatility.

Historically, LQD has an inverse relationship with the 10-year U.S. Treasury yield. The recent volatility in the yield curve has made LQD options an attractive bet, with low historical and implied volatility making options relatively cheap. The trader is targeting a significant price movement or volatility expansion with this LQD straddle trade.

Read more at Barchart: What This $2M Options Bet on Corporate Bonds is Saying About the 10-Year Yield Curve