Options are commonly used as hedging instruments, especially options on indexes and ETFs.  The iShares MSCI EAFE ETF (EFA) is a popular asset allocation ETF which invests in stocks in developed countries ex US.  As such, it makes for a good product to hedge with (using options), since it tracks the global equities market fairly closely. A fund or institutional trader recently purchased a massive put spread on EFA which expires in July.