Market News

November 23, 2016  Wed 6:14 AM CT

A large positioning is preparing for more downside potential in the iShares MSCI Brazil Index Fund.

OptionMonster's tracking program detected the sale of 12,000 December 33 puts for $0.83 and the purchase of 12,000 June 33 puts for $2.98 yesterday. Volume was below open interest in the December contracts, indicating that a bearish position was rolled forward by six months.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

EWZ rose 1.24 percent to $34.17 yesterday but is down 11 percent in the last month. Overall option volume in the fund was about average in the exchange-traded fund.

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Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

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