Options Trading News

November 19, 2013  Tue 9:16 AM CT

Traders are betting further upside will be limited in the iShares China Large Cap Fund.

More than 18,000 December 41 calls have traded in volume well above the strike's previous open interest of 8,940 today, according to optoinMONSTER systems. The big block of 14,500 was sold for the bid price of $0.67.

The calls could have been sold naked with an initial bearish bias. But it is more likely that they were traded against long shares in a covered call position, which would be bullish but only up to the strike sold. (See our Education section)

The FXI is up fractionally to $39.92 this morning.  The exchange-traded fund has jumped from support at $36 in the last week. It is now at the highest levels since February. 
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The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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